In today’s globalized economy, manufacturers are under intense pressure to minimize costs while increasing customer satisfaction. To achieve these ends, efficient management and optimization of the supply chain is a critical piece in the operations of modern day large enterprises. In addition, to remain competitive and profitable in this results driven, hyper-competitive global economy, every organization must operate as a single intelligent enterprise, with all departments collaborating toward common goals and objectives.
A well-designed supply chain network can significantly improve margins, support expansion into new markets, enhance the customer experience, reduce operating costs and most importantly allow organizations to meet their top line business goals.
However, the complexities and fluid nature of cost structures, tax laws, skills and material availability, new competitors and others—provide multiple challenges for these organizations with regards to supply chain optimization. An agile ongoing process that focuses on flexibility and ensures that business objectives are consistently met in multiple market conditions.
Most companies now realize the importance of supply chain optimization but many are still struggling to make the best use of it. The challenge typically lies in selecting the right approach.
The starting point to define that approach is to create a clear and concise supply chain strategy. Large manufacturing operations are complex organizations, with competing business goals across departments—such as minimizing capital, improving margins, and enhancing the customer experience. Many times, companies just begin by implementing point strategies to reduce network costs without considering how those changes affect the overall supply chain and more importantly how those changes impact the ability to achieve the businesses top line goals.
Once the strategic plan is developed it should be coupled with a review of processes, technology, and people that:
- Ensure alignment with top line business goals
- Utilize the best analytical tools to achieve the overall business objectives.
- Analyzes alternative processes to maximize return-on investment while delivering improved operational metrics for customer service, inventory control, and transportation performance.
- Are agile enough to be reviewed and refreshed as internal and external factors change.
A sound supply chain plan must have a complete 360 degree view and have a defined set of requirements. Business and process requirements should be defined, analyzed, evaluated, and validated and the finished product should result in the development of a specific set of strategic requirements.
The plan should also set forth specific action items and the time frames associated with those items. And have specific change management plans in place to be able to adjust for those ever changing internal and external factors that affect an organizations supply chain.
If the plan is built to align with the goal of achieving management’s top line business goals and all stakeholders within the company are on board and prepared for the plan to become a true process and not a one-time project, that is when an organization is on its way to supply chain optimization success.
RWS offers a unique top down 360 degree view of assess, manage, plan, and implementation of supply chain optimization processes that can help ensure your organization achieves its corporate business objectives.
RoundWorld Solutions (RWS) offers industry leading Data Governance consulting services to large organizations across the U.S. Our unique 360 degree view principle allows us to offer comprehensive services that enable the efficient and effective creation of templates for Data Governance.
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If you would like to discuss the Roundworld Solutions Big Data 360 View Tool, or this article please contact the author Arun Kumar – Vice President, Solutions and Delivery at arunk@roundworldsolutions.com or contact us today.