Logistics plan elements. To develop your supply chain strategy, three strategic plans are required; one each for Procurement, Conversion and Logistics. Using the business model from my previous blog the Logistics strategic plan can be considered within five elements shown in the diagram: Customer service – the appropriate level of service for customers, by product group or segment, considering: order fulfilment … Read More
A strategic Supply Chain model for your organisation
No supply chain view in your business strategy. Does your organisation have a strategic business plan that incorporates the supply network? If the answer is no it is not surprising, because few companies have a strategic plan that includes this critical part of the business. The reasons often put forward are: The three elements that should be the core of … Read More
Assess your supply chain risks before taking action
Your assessment of risk. The main difference between uncertainty and risk is that risk can be measured. Once measured, decision makers can assess the importance of one risk against another and if necessary, allocate resources to reduce either the likelihood of the event occurring or the consequences if it does occur. The assessment of a risk is influenced by the … Read More
Placing your supply chain risks into categories helps
Next step in managing risks. In addition to identifying supply chain risks within each classification, discussed in my previous blog, you need to broadly categorise them. This provides a view about the amount of analysis required. There are categories of risk between certainty and ignorance: Certainty: in reality, you rarely meet situations of certainty. The closest could be depositing money in … Read More
Manage risk in your supply chains and reduce stress
Your interest in supply chain risks. Managing risk is a continual process of identification, analysis, assessment and implementation. Attached to your organisation’s One Plan should be the risks in achieving the Plan and management’s actions to counter the risks. It is preferable to anticipate potential problems, rather than overcoming disruptions after they have occurred. Supply chains are uncertain (and therefore … Read More