Determining the best supply chain strategy to deliver maximum profits and sustainability is contingent on a company's:
For example, highly competitive, commoditised environments require a supply chain solution that focuses on efficiencies to maximise the small margins on offer. Strong Sales and Operations Planning (S&OP) is required to ensure inventory is available to support demand. High asset utilisation is also important to minimise production/product costs.
Alternatively, short lifecycle products require a strategy focused on speed-to-market, with continuous product development, and efficient and reactive S&OP processes to meet customer demand and to minimise obsolescence. A single or low batch purchasing and/or manufacturing strategy is likely to best support this environment.
There are many more supply chain strategies to support a variety business models and each will have various cost and service compromises.
Prological can provide consulting services to review, develop and optimise your supply chain strategy.
Prological provides unbiased advice providing our clients with customised and sustainable, best-practice solutions.