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Supply Chain StrategyA Supply Chain consists of all of the elements involved from predicting the customer demand for a company’s product to getting the product to the customer on time. Developing a sound Supply Chain strategy requires a thorough understanding of the corporation’s business objectives and the complex dynamics between each link in the chain. One common error we encounter is where companies will spend considerable time and money focused on optimizing a discrete part of the Supply Chain while sub-optimizing the benefits to the Supply Chain as a whole. Consequently, costs are pushed upstream or downstream but not out of the Supply Chain as a whole. Often times, organizational structure and financial/bonus incentives can contribute to this phenomena. Global Supply Chains can create longer manufacturing/sourcing cycle times which makes companies that rely on forecast-based production more susceptible to the “bullwhip effect” which occurs when variations in customer demand become amplified along the Supply Chain causing increased inventories and reduced customer service. There are a number of individual Supply Chain tactics that can be applied to minimize the “bullwhip effect” as well as to maximize the performance of the Supply Chain as a whole. In addition, defining the appropriate organizational structure and the skill sets required are also critical. PAC Group has a proven track record of success developing global Supply Chain strategies to maximize return on investment for companies in Consumer Products industries with complex product mixes and multiple channels of distribution. Let us help guide you through the development of a strategy and organizational structure that is suitable for your industry and business objectives.
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