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How should you design your Supply Chain to improve its effectiveness?
Most companies endeavour to improve the effectiveness of their supply chain and the questions they often grapple with are … Is my supply chain designed properly or should I have a relook at it? If we need to alter the design, how should we go about it?
Many teams approach it from the tools that their competitors use. Should we go for a new planning solution? Should we go for IBP or DDMRP? Will the benefits justify the investment and the cost incurred?
Our experience in implementing several supply chain transformation projects suggests that the design improvement should be concept-driven rather than tool-driven. How do we improve product availability and product freshness together? How do we fulfil customer orders faster? How do we improve the demand-supply alignment on a more dynamic basis? How do we make the backend operations more flexible to fulfil the evolving demand shifts?
The solutions that emerge from these concept-driven questions are more robust and sustainable than implementing just a particular tool and hoping that the supply chain becomes more effective!