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5 Critical Focus Areas for an Effective Supply Chain


The volatility in the global manufacturing environment demands an optimized high performing supply chain. Lowest price, shortest lead time, or acceptable quality are strategies that can no longer be relied on by companies.

When was the last time you looked at how effectively your supply chain is performing?  Is your supply chain optimized? The optimization process begins with a comprehensive understanding of your supply chain. The CMTC Manufacturing blog recommends the following five critical areas that require management attention to achieve an optimized high performing supply chain:

1. Alignment – The supply chain strategy needs to actively align and support the corporate goals of future growth, innovation and sustainability.

2. Value – The supply chain strategy should identify suppliers who will assist us in achieving our future goals through collaboration and providing a means of growing our mutual businesses through sharing of ideas, capabilities and capacity.

3. Managing Risk – A well thought out Risk Management Plan is necessary to prevent supply chain interruptions and unexpected events that would render our product uncompetitive, unavailable, or unattractive to the marketplace.

4. Comprehensive View – The performance of the entire supply chain must be examined in order to identify current and potential future constraints. If we only look at suppliers who represent current bottlenecks we will fail to recognize potential future constraints.

5. Metrics – We can’t improve what we don’t measure. If we don’t measure the “right things” the problems will persist.

You can read the full article here.

Stayed tuned for future posts offering a more in-depth analysis of the 5 components above. Check back often to The Smarter Supply Chain Blog and please participate in the conversation around the critical nature of supply chain optimization by connecting with us on Twitter and LinkedIn.

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