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Are we open to new ideas in design of our Supply Chains?
I have seen many leading companies with their cutting edge supply chains. The teams often get complacent and feel that their supply chain design is ideal. Their improvement efforts focus on improving efficiencies within the current design. Why make a bold change and rock the boat?
However, the market environment is much more dynamic. Consumers are getting more demanding in terms of product availability, freshness and assortment. Channels are getting more specialized with new D2C channels opening up. Competition is getting more flexible and responsive. Is it prudent that we stick to the current design?
My suggestion would be to keep improving our capabilities in terms of demand sensing, flexibility and responsiveness. If the market demands segmenting the supply chain and run them differently, we should do it. If it means redesigning parts of the supply chain, just do it.
Stay focused on consumers and do whatever it takes to fulfil their needs. The supply chain design should support our objectives instead of coming in its way.
A simple tweak in the design is often more effective than many efficiency improvement efforts put together.