Supply chain operations
Balaji Padmanabhan shares an article that explains why executives must rethink the goal of cost reduction in supply chain operations to maintain a competitive advantage.
With repeated disruptions impacting business in recent years—from the financial crisis to severe weather to Covid-19—ensuring continuity of supply has become a top priority for CEOs and Boards. A survey of S&P 500 annual reports shows Supply Chain capability is a growing concern, with new initiatives underway to boost resilience, efficiency and flexibility. Excellence in Supply Chain operations is fast emerging as a major differentiator and a key to competitive advantage across industries.
Historically, most organizations have viewed Supply Chain operations as a “Cost Center” and focused on cost reduction and efficiency gains. For Supply Chain operations to achieve a competitive advantage, executives need to expand their thinking to integrate objectives along the following dimensions:
Managing Complexity – Globalization and the drive to cut costs at each step have created ever-more convoluted paths that, while seemingly cheaper, ingrain complexity and boost vulnerability. Tackling complexity starts with an understanding of the mid- to long-term demand/supply balance, the geographic distribution of customers, product value density, inventory positioning, and supply risk profile. Further upstream, organizations need to take a hard look at the impact of “SKU proliferation” and the net benefit of providing seemingly infinite choice to customers.
Key points include:
- Value-Adding Digitization
- Integrated Planning and Operations
- End-to-End Execution
Read the full article, Supply Chain Operations as an Enabler to Delivering Business Strategy, on LinkedIn.
Amanda Setili shares eight steps you can take to mitigate stress and uncertainty during the current crisis.
I’ve been astounded by the degree and speed of innovation and change these last few weeks.
Things that in normal times would have taken months or years to do have been accomplished in days, largely because people are banding together to help each other. In the midst of suffering, stress, and a good bit of fear, there is more kindness than ever.
And as a society, we’re learning faster than at any other time in my lifetime.
People have shifted to remote work, retailers have ramped up store pickup services, governments have created relief programs, factories have shifted to making personal protective equipment, the Army is building temporary hospitals, and scientists and regulators are speeding new treatments to market. It’s impressive.
The steps outlined include:
- Supporting the needs of society
- Employee retention
- Customer support
- Cashflow forecast
Read the full article, Innovation amid Stress and Uncertainty, on the Setili website.