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sinha.rk.dr@gmail.com
How do you approach the design of your Supply Chain?
Every company’s supply chain is unique in the context in which it operates and the goal the company is pursuing. I have heard many Supply Chain leaders say that they would like to have a relook at their supply chain design to make it more effective in serving their customers and achieving the company goal.
While the objective of supply chain design is clear, the approach towards it varies from team to team. Let me illustrate it with two approaches I have seen deployed most often.
The first approach revolves around the tool they would like to use. They look at various supply chain planning and execution tools in the market, analyze their functionalities and select the one that suits their objective. The entire supply chain design is then based on the requirements of that specific tool. Let’s call it ‘Tool Based Design’.
The other approach is based on the specific supply chain concepts which would solve their pressing problems and move them closer to the goal. Once the concepts are clear and the direction of change is agreed upon, they would look at the tools which could help them. In many cases, they may not require a new tool at all. Let’s call it ‘Concept Based Design’.
My experience in working with several supply chain teams across industries indicates that ‘Concept Based Design’ works far better and is more sustainable and resilient.
Would love to hear your thoughts in this regard…