How can I improve my supply chain? (Strategy)

How are your logistics and supply chain operations performing now? 

If like many organisations your operations are a collection of old processes, with poorly integrated systems; then imagine what opportunities you have if you take advantage of some of the current technology and enhanced processes to significantly improve the performance of your organisation!

Strategy first

Your supply chain strategy describes the set of activities you will take to support your overall business strategies which will move you towards your goals.  So the supply chain strategy is always a subset of your overall business strategy.  It is important because it informs the key decisions you will make about how your supply chain is structured and what you invest in to achieve the results you desire.  Many businesses have an implicit strategy rather than a written one, they make strategic choices based on instinct and short term pressures sometimes putting a lid on their effectiveness and productivity for years.  

I see this when organisations install infrastructure, technology or systems that lock them into long term operational practices that are unsuited to their business or simply don’t perform.  The worst thing about this is that the under-performance can go unrecognised because the results are never measured or compared to alternatives.  

The result is often frustrated staff who live with the consequences every day.  Perhaps even more dangerous is compliant uncomplaining staff who diligently work the inefficient systems and processes and never even raise an alarm but just accept the way things are.  It is quite frankly better not to invest in new technology at all than to invest in the wrong technology and lock in poor productivity for the long term.

So the first place to start is to understand where your organisation is at and where it is aiming for and then take a fresh look at how to get there and make some hard decisions on what will need to be changed.  Doing this well requires the assistance of a logistics professional with clear grasp of what is possible and most appropriate for different types of businesses and industries.

What next?

Logistics and supply chain operations are now at the core of most business.  Getting professional advice before you make and act on major decisions will be one of the highest payback business investments you will make.

If warehousing, logistics and supply chain are important to your business or your personal career then why not follow this blog by email or on Google+.  To tap in to the full benefits of business and career boosting ideas I suggest you join The Warehouse Performance Initiative.