Supply chain management

In the e-commerce age, it’s important for companies to formulate and manage supply chain strategy, structure and processes. Since most products and services can be differentiated from the competition by superior customer service and delivery performance when price, design and quality are similar, the payoff is high in achieving supply chain excellence. You can minimise cost of goods, operating costs and inventory investment by designing and implementing efficient supply chains.

What steps are involved in supply chain management?

  • Using the worksheet on pages 4 and 5, you can construct a quick success profile of your company’s supply chain by answering a series of questions that focus on metrics for customer service; inventory turnover, product movement costs (i.e. inbound, inter-facility and outbound freight), and product storage (warehousing) costs. Please note that not all questions will apply to all companies. Answer those that make sense for your organisation.
  • The quantitative measures can be reviewed and analysed internally – essentially establishing your own benchmark.
  • You can address areas for improvement in your company.

What is the CEO’s responsibility in this process?

The CEO’s responsibility is to:

  • support the initiative and the process
  • assign the proper individuals to collect the data (usually found in the chief financial officer’s (CFO’s) accounting group and management information systems (MIS) personnel)
  • review and confirm that the data to be fed back appears reasonable, complete and correct.

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