Home' MHD Supply Chain Solutions : MHD Mar-Apl 2017 Contents THE3CSFORACEO
TO SEE WHAT’S REALLY
IMPORTANT IN A
elegation of supply chain responsibilities?
Sure. Employee empowerment for better
supply chain performance? Absolutely.
But to set your enterprise and its workforce up for
successful supply chain operations, the starting point
has to be what is really important for sustainable
achievement and profitability. While you may
have the smartest supply chain director that your
company’s money can buy, and people champing
at the bit to get on with supplying your company’s
goods and services, you as a CEO will continue to
have a critical role in making the supply chain work
properly. For this reason, you need to know about
the basics that underpin positive results and without
which your enterprise could lose supply chain profit,
customers, and even its reputation in the market.
3 Cs? Coming right up!
While these 3Cs for supply chains are simple
and easy to remember, it’s how you apply
them that makes all the difference. We’ll
discuss each one in turn afterwards, but here
are some initial pointers.
• Clarity. To start with, you have to know what
your enterprise business goals are and what
your business strategy is to achieve that.
Too many organisations are unclear, even on
these fundamental aspects. However, if you
don’t know what they are, it is unlikely that
you will be able to define or identify a suitable
supply chain strategy.
• Convergence. When you know what you
want, the different components of your
supply chain have to be oriented towards
those goals. In particular, people want to
know what the benefit will be, personally and
organisationally, in applying the supply chain
strategy for specific results.
• Cooperation. Not only do the different parts of
your supply chain have to work towards your
business goals, but they also have to work
together. Conflict or efforts that cancel out
each other’s efforts must be avoided. Instead,
the supply chain whole has to be greater than
the sum of its parts, and cooperation is the
way to achieve this.
To be useful, each of these 3 Cs must be
linked with the goals of customer satisfaction
and overall profitability that apply to most supply
chains, as well as to objectives specific to your
market or sector.
1. Clarity on current
status and goals
Let’s assume that as a CEO, you know your
overall business strategy. Will your supply
chain strategy help or hinder the execution
of your business strategy? What follows may
shock you, but after years of experience
working with hundreds of businesses with
turnover anywhere from $100 million to $10
billion, the biggest supply chain strategy
problem we’ve seen is that companies simply
don’t have one! Our statistics at Logistics
Bureau show that 61% of businesses
do not have a documented supply chain
strategy or do not have one that is properly
communicated across the business.
Without a clear supply chain strategy, it is
impossible to be sure that the supply chain
is providing what the enterprise needs, what
customers need, and what business priorities
dictate. In this case, it is more than likely that
your enterprise is burning up money, time and
energy on activities and objectives that are
not a high priority. Yet even though a supply
chain itself can be complex, a supply chain
strategy can be simple. It doesn’t have to be
encyclopaedic, either: a one-page guide to bring
the necessary focus and direction can often be
just as effective.
Reviewing current supply chain
structure and performance
If your enterprise does not yet have a supply
chain strategy, now is the time to create one.
The first step is to review the supply chain
structure and performance as it is today, to
answer the following questions: how capable is
your supply chain of meeting customer needs?
Does the offer of your enterprise, based on its
supply chain, correspond to what customers
are asking for? Does what your enterprise
actually delivers satisfy them? Keep in mind
that it is unlikely that a ‘one-size-fits-all’
approach will allow you to meet all the needs of
For a clearer picture of the state of your
supply chain, it often helps to follow the
THE MUST-KNOW 3CS
MHD SUPPLY CHAIN SOLUTIONS — MARCH / APRIL 2017
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