Aexccoemllemncoen wmiitshtaakfeocisustoosntaprrtotcheessjo. urney of supply chain Don’t start with the process. For most, this is tough. The reason? Companies sc thraui gngbl ee sbtepc raaucstei coefs t. hI ne sat es saudm, aps t si ohno wt hna ti nt hFei gr eu raer e2 .s5u, pt hp el y starting point should start with a clear understanding of bp ua rsti noef stsh set sr autpepglyy. cThhaei no ps et rraattei ng gy -s- tf lroawt esg yf r-o- ams ti ghne i bf iuc as ni nte s s strategy. The operational strategy defines the flows of the supply chain. Figure 2.5. Define Process Flows by First Defining the Business and Operating Strategies
Efficient . An efficient supply chain focused on the luoswu ae lsl ty croespt r. eTsheins tfsl o2w0 -i3s 0p%r e od fi ct thaeb fl ei r; mh ’i sg ht ovt oa ll uomu tep u t . Responsive. The responsive supply chain is all av ab cocui tn rees d, augcri ni cgu tl ti mu ree. , Rs ee adsuocni nagl pc ryoc dl euscitss ,eas ns ednet vi aelnftosr. Tb eh ee fffliocwi esn ot . f Tt hh ee rr ee ss pp oo nn ss ii vv ee svuo pl upml yecchaani nv awriyl l fnr oe mv e r 5in-d1u0s%triinesc.onsumer goods to 80-90% in agriscience Agile. The agile supply chain has low-volume prod- ucts with high demand and supply variability. Exam - pp lreosdaurcet ml a ua cnhc ihnees ,paanr dt s f, odoeds i sgenrevri/c fea ps hr oi odnu ci ttesm. As ,nn e w ai sf taenr si hn oc rcekafsoer imn adneymfaonl ldo wv ai nr iga bt hi lei t ryeacne dn tt hd ei s sr hu ipf tt i oo fn products from efficient (easily forecastable prod - ucts) to products that require more agile techniques. F1o8r%onsheicftoimn pparnoyduI catmvowluomrkei.ng with, this was an Seasonal. These products sell within a season. The pt i roen- sb. uWi l di t hl oogui tc tuhsee isndc el ums iaonnd oaf nmd asrukpept l dy aat sas, ut hmepd- e - m3 0a-n5d0 %e r roof rt haveei rravgoel usm5 0e -a7s0s%e a. sMoannayl ictoemmps .a n i e s h ave Low Volume but Predictable Items. The key is to ac hl i ag inn tfhl oe ws es pt roomd ui nc itmf liozwe sc ywc il tehs tt ho ec ke if nf i cmi eannt usfuapc p l y - tmu ar innagg ae nmde nmt aoxfi mt hiezseet irtaenms ps oi sr taant i aorne aa sws ehtes r. eT hs ue p p l y cmheani nt opfl aenc no ni nogmeixecseol sf. sPclaalnen. i n g e n a b l e s t h e a c h i e ve -
Let me give you an example. When you ask, “What defines supply chain excellence?” Four of five business leaders will reply that the most effective supply chain is efficient. When you ask, “How do you define efficiency?” The answer issi duesrutahl ley dt hi sec ol onwn ee cs tt -icf ot shtesbuupspi lnyecshs asitnr .aHt eogwy ei sv egrr, ocwo nt h- . I f the company drives efficiency in supply chain design, the organization will kill growth. Nfloowws, .cEoancshidreerqtuhiartesa dcoesmigpna:ny typically has four to five
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