Estimated reading time: 3 minutes, 20 seconds

multitoolRecently Scott Koegler published an article on “Fixing Your Supply Chain” in which he quoted the “Top Five Opportunities In Your Supply Chain” per OPS Rules Management Consultants. He then “threw down the gauntlet” for others to list their own Top 5, and see if these match. I am accepting the challenge!

Here is my game plan: I'm going to identify and add other vendors who are good at fixing your supply chain and see what THEIR opportunities might be. Then I will pick MY top 5 and tell you why I picked them.

Opportunity Project

Possible Vendor's Actions

My Take

Emergency management supply chain

Need to be familiar with emergency procedures. This means the entire Chain (purchasing, etc.)

No.1 The single biggest risk in current procedures.

Visibility and the “Control Tower Approach”

The Control Tower idea, when done correctly and in conjunction with other fixes can be very successful. Visibility is a prerequisite to supply chain agility and responsiveness.

No. 2 The Control Tower is one of the best ideas we have seen.

Developing supply chain talent

Companies need to find the right people, provide continuous training and allow them to learn and develop by rotating their roles in the supply chain.

No. 3 Supply chain talent takes years to develop because of the broad knowledge required.

Each and every interaction, transaction and update that takes place in any part of the supply chain generates data. It is a difficult task to consolidate.

Effective management of data and external information helps in reducing inefficiencies and increasing productivity in the supply chain.

No. 4 Organizations that are good at using their data will win in driving big data opportunities and will have an edge over their competitors.

Supply Chain Complexity: low-volume, high-variability, low margin products

Identifying numerous and subsequent pricing changes and pruning of cost absorbing products of the supply chain.  Long tail analysis of product families.

No. 5 It is all about VISIBILITY

Supply Chain Complexity: Modeling the entire supply chain in order to analyze the network and total costs.

The measurement of total landed costs and the ability to optimize inventory across the entire supply chain can lead to significant efficiencies and improved customer service. Network optimization

No. 5 It is all about VISIBILITY

Supply Chain Complexity: Understand your customer’s value proposition and your ability to satisfy that.

Opportunities to reduce complexity may also be found through product design, delivery methods and  supply chain segmentation.

No. 5 It is all about VISIBILITY

“Big Data”. analytics is the essential to translate Big Data into value.

Data analytics is the science of examining raw data to help draw conclusions from this information.

No. 6 SCM is still very much at the infant stage for many companies and will take years to mature.

Coordinating B2B and B2C

Best practice process steps for B2B and B2C demand-to-fulfillment convergence.

No. 6 This is an important move to make. Like an end-to-end supply chain

Key Performance Indicators (KPIs) and more importantly Key Performance Predictors (KPPs) to monitor supply chain performance, identify risk and minimize cost.

Build a model which emulates the client’s supply chain characteristics using advance mathematical programing and identify which KPIs their business profitability is most effected by through the use of sensitivity analysis.

No. 7 Companies that can identify the right KPIs and KPPs enjoy high transparency of their supply chain, ability to prevent failures in the supply chain, and lower total landed cost.

Forecasting accuracy

7 steps to improve forecasting accuracy

No. 8 A key to success

Supply Chain Security

Important steps to supply chain security.

No. 9 Security can not be dismissed anywhere in the company

Need good in-house systems before you can lead your supply chain

ERP/EDI Integration: Is it time?

No. 10 In-house systems must lead the way to success.

Conquering Supply Chain Complexity

My OH My! All kinds of solutions rolled into one. Let's solve all the problems of the World at once.

This was in the original article but will be split into several solutions

Last modified on Tuesday, 26 August 2014
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