Optimize flows not the functions To better understand the performance of their supply chains, organisations should measure the performance of Flows – items (going out and reverse); money; information and data, rather than emphasising the ‘efficiency’ of individual departments. The core Flow of the Supply Chains group (Procurement, Operations Planning and Logistics) is to provide Availability that satisfies customers’ needs … Read More
More Procurement skills for knowledge of Supply Chains
Changing skills in Supply Chains The disruptions to supply chains over the early 2020s has provided a likely foretaste of the future. New terms, such as Sustainability and Resilience are being used. As in past decades, new terminology means change for the expected skill set for professionals working in supply chains. While policies, processes and information technology are important elements … Read More
Supply Chains Group gains from a Value Added Statement
Value of the total Workforce It is common for Chairman and CEOs of companies to inform shareholders at AGMs that ‘our people are the most valuable asset’. Yet if challenged about the value, they would not have a number to support the statement. Experiences through the COVID-19 epidemic have shown that people are the ‘make it happen’ force behind supply, … Read More
Complex Supply Chains Network and Business Complexity
Complex and Complexity When discussing the topic of Supply Chains, the terms Complex and Complexity can be regularly used. But, while sounding similar, they are different. Complex is used when describing Supply Chains Networks. These are difficult to understand, because relationships between parties in the Network can be dependent, independent or interdependent, with different responses that depend on influences from … Read More
New laws will require supplier mapping by Procurement
Procurement policy Procurement departments in private sector organisations have often been left to develop their own policy and procedures, with little external oversight or interference. However, as legislation concerning adherence to ESG (economic, social and governance) is enacted (mainly in developed countries), the regulatory Framework will become a Policy document for Procurement. Within ESG legislation, stakeholders have rights that are … Read More