Good Supply Chain Management is both a key driver of business success and one of the hardest hurdles for managers to overcome. Supply Chains are not “sexy”, and this is well articulated in a survey conducted by the Chartered Institute for Purchase and Supply of chief executives and finance directors that found that 48% could not recall the annual expenditure of their supply chain yet they could list turnover, sales, profits and salary costs.
Supply Chain Management can easily be summed up as the linkage of the immediate seller/buyer as part of a continuum, which recognises the benefits to be derived from attempting to take a strategic and integrated view of the supply chain, rather than focussing on the individual links and thereby sub-optimising.
Supply Chain Management is about End-to-End control and visibility thereby giving assurance of delivery:
Although an end-to-end supply chain sometimes seems like it’s a linear function, the reality is that it is a complex web of dependencies and relationships across multiple disciplines both within, and external to, the primary organisation. As an example, a typical enterprise level supply chain may have contracting, procurement and commercial functions, finance and compliance, human resources, infrastructure, manufacturing & warehousing, distribution and fleet management, information systems and marketing. Without the ability to understand and traverse these functional boundaries, it is virtually impossible to evaluate the business performance of an organisation, let alone to appraise it.
A key question for supply chain design is “what strategies we should use to get our products and services to the various customer groups we have opted to serve?” Whether you are in the process of setting up your supply chain or have existing supply chains or new products, the team at RubiKon is extremely well placed with international and national expertise in the design and management of Supply Chains.