Without a comprehensive ‘all inclusive’ Supply Chain Strategy, you will not be able to achieve your Corporate Strategy in the most efficient and effective way possible, or, achieve it at all.
Most companies do not have a Supply Chain Strategy, simply because they do not realise they need one and may not know what it is. A Supply Chain Strategy is the company’s strategic plan for how it will establish, manage and sustain the supply chains and operations required to achieve the Corporate Strategy.
Quick recap – what is a supply chain? In basic terms, it is a chain of entities that are working together to supply goods and services from supplier to customer. Your Supply Chain Strategy will:
- Provide an end-to-end supply chain focus or will target specific inbound supply chains or outbound supply chains as dictated by the Corporate Strategy (including existing and future supply chains)
- Define, segment and prioritise existing and future supply chains (e.g. product family 1 to market channel 1; new product family 2 to market channel 1; product family 3 to new market channel 2; etc.)
- Identify the build strategy of each supply chain segment (e.g. make-to-stock etc.)
- Identify and prioritise the strategic performance requirements of each supply chain segment from the customer or market channel perspective and as dictated by the Corporate Strategy (e.g. revenue, speed, accuracy, quality, cost, efficiency etc.)
- Outline the strategic, operational, design and configuration requirements for the supply chain network, processes and resources (including all value-adding operations) that are and will be required to achieve the strategic performance requirements dictated by the Corporate Strategy
- Identify supply chain collaboration and partnership requirements.
Once implemented, you can then monitor and measure the effectiveness of the Supply Chain Strategy. Is it achieving the Corporate Strategy or not? Your Supply Chain Strategy will be one of the best proactive documents your company will have ever written, and the most used.
Would you like your Supply Chain Strategy performing at the highest level of supply chain maturity? If so, then it would look something like this:
Supply Chain Strategy Goal: Supply Chain Strategy is aligned with the Corporate Strategy. All market channels have confirmed build strategies; are segmented and prioritised; strategic performance priorities are identified and managed to best-in-class standards. Strategic objectives and performance targets are sustainable and substantial value is continuously created.
At Supply Chain Coach® we empower individuals and teams to establish a globally-competitive Supply Chain Strategy by providing guidance and education in the following areas:
- Strategic Supply Chain Management
- Supply Chain Strategy Review & Development
- Supply Chain Strategy alignment to Corporate Strategy
- Supply Chain Segmentation, Prioritisation & Performance
- Supply Chain Engagement
- Supply Chain Collaboration
- Supply Chain Partnerships
- Supply Chain Policy Review & Development
- Supply Chain Value Creation & Co-creation
- Supply Chain Revenue & Profitability Review
- Strategic Sourcing, Procurement Strategy, Category Management