As your business starts to see the light, it’s now time to get your supply chain in order, making it not just Resilient, but a value adding machine!
Customer’s needs are changing & the supply chain needs to have the agility to be able to change too.
Protect Service through a Resilience supply Programme
A Resilient supply chain will lead to a better service level to your customer & ultimately your consumer. The higher the service level, the higher the sales!
Once you have assessed the needs of your current and future consumer, rather than their needs pre-covid then you assess whether your new supply still works.
- What materials are critical to your new product portfolio
- Have you secured contingencies for these critical materials?
- Can you source ‘locally’ as well as globally
- Are your suppliers Resilient to the pressure of the new norm – are they financially secure.
- Can you, and will you support your key suppliers during difficult times
Can you beat the service of your competition? – a good Resilience plan is a major competitive advantage (and also helps you sleep better at night!)
Do you have the right suppliers, with the right capabilities, in the right places? And do you treat them well?________________________________________________________________________
Ensure Supply through excellent Relationships with Suppliers (SRM), and potentially enter into Joint Business Plans with your Strategic Supplier partners
Your suppliers are crucial to your success – they typically account for 75%+ of your cost of goods!!
Are they the right suppliers?
- Strategic Alignment – do they share your aspirations and strategic goals
- Communication & trust – How did they/ are they supporting you during the Covid crisis – how have you treated them?
- Cross Functional alignment – how is the breadth of the relationship and engagement across the supply chain and the business – do they feel ‘special’
- Value Creation – are they rewarded for positive performance
- Governance – do you record success and provide mutual feedback on each others performance
You improve this situation through a supplier programme – a close relationship with your supplier leads to better supply, better service, and greater support when the chips are down!!
Where do you get all the good new ideas for goods and service – do you do it all yourself?________________________________________________________________________
Generate Innovation for our businesses
55-65% of all Innovation comes from Suppliers (source: Institute of Supply Chain Management). Use your Strategic partnerships well!
- ‘Open your cupboards’ – Develop shared programmes with your supplier partners by sharing ideas & strategy
- ‘Two minds are better than one’ – Make use of combined Research & Development resource
- ‘Collaborate with the best’ – Get access to their Best product & Service ideas/ & their best people
Is your supply chain ready for all the new needs of your customers?
The expectations have changed – the delivery methods have changed
Provide Speed to market and product differentiation through the development of Agile Supply Chains
- Assess the flexibility of your supply chain to meet the new needs. Are long production runs a thing of the past? (eg personalised products) Or are they ideal? (eg PPE, hand sanitisers) Make sure your new supply chain is fit for purpose
- Do your manufacturing sites produce to customer preference, or to capacity
- Have you assessed what you need
An Assessment of your supply chain is essential for the new normal
Is your business suffering through increased cost & reduced profit/margin?________________________________________________________________________
Increase margins through Network/ Supply Chain consolidation which improve efficiency & save costs
- Does your supply chain meet your new needs?
- Do you need to assess where your sites are based and to consolidate the network? Don’t wait for the ‘fire to go out’ – act now
- Can you deliver savings through supplier savings generated through alternative material or service provision
- Negotiation – and of course professional negotiation is still a requirement
An assessment of your full Network is required. Let us do the assessment for you!!