Supply Chain - the Engine for Growth

Or, how to reduce costs, increase productivity, fully engage suppliers and boost customer satisfaction!

In today's environment, doing what we’ve always done - even if we’ve done it very well - is no longer acceptable. Supply Chain practices are no different and are now evolving from staid, linear sets of discrete functions into dynamic networks that are better able to adapt to rapidly changing demands and more agile business operating models. The functions of planning, manufacturing, inventory management, procurement, supplier management, logistics and customer service are shifting from an emphasis on optimising each discrete function to a more holistic end-to-end approach with each area collectively optimising the supply chain to achieve strategic corporate objectives and maximise customer satisfaction.

 A holistic focus is enabled by innovative modern cloud based technologies with built-in flexibility, connectivity, embedded analytics and mobile enabled, allowing companies to adapt quickly and achieve competitive advantage through better serving customers, exploring new revenue sources and gaining access to new markets.

So what steps might you consider to develop a supply chain that adds value to the organisation rather than simply accommodates the needs of the organisation?

Establishing a Supply chain Organisation (SCO) within your business will enable a business to develop a holistic perspective on each of the key and currently separate functions. The SCO can give direction and help align supply chain strategy with the company's overall objectives. Members should include the leaders in the business, together with those responsible for planning, manufacturing, inventory management, procurement, supplier management, logistics and customer service and should also have input from sales (future demand); finance (analysis and reporting) and operations (efficient and effective stock management).

The establishment of a SCO will demonstrate internally and externally that those responsible for procurement and supply have the endorsement and commitment of senior leadership. The platform will provide constant, consistent validation that the supply chain strategy directly correlates with the overall company strategy and that the future success of the business is dependent on a robust supply chain function. It will also remove internal barriers and encourage collaboration.

When it is clear that the leaders are fully embracing the supply chain organization, it is likely that all stakeholders will be more willing to work with and collaborate on supply chain efforts and initiatives.

Finally, the SCO provides an effective forum for cross-functional communication. An active governing organisation creates an opportunity for business units to provide the supply chain leadership with information regarding future strategies and projects.

In the current climate where growth in real terms across multiple sectors is forecast to be at besrt marginal, many businesses are under pressure to contain costs and produce results despite challenging circumstances. Transforming the role of the supply chain can deliver cost reduction, improve efficiency, increase employee engagement and boost customer satisfaction scores.

Finbarr Doyle can be contacted at [email protected]