Creating a framework for measurable supply chain success
Challenges related to cost management, efficiency and escalating customer expectations are significant obstacles to supply chain success. These can be mitigated by reconfiguring logistics performance measurement strategies, according to manufacturing and logistics vertical consultant Ramji Mani, writing for the Supply Chain Digest.
Specifically, factors such as speed, capacity management and utilization have proven to be differentiating factors in terms of the cost of logistics for organizations.
"While real-time flow of information is shrinking cycle times and improving response to change, service providers need to be quick to identify market demands and refocus their efforts on more rapidly growing regions," Mani wrote.
He also stressed the importance of identifying and addressing issues in stable markets before competitors take away market share, which has the potential to be disastrous if adequate data-capturing and analysis measures are not in place.
With regard to the data capture and analysis process, Mani recommended upgrading outdated legacy systems and discouraged the use of independent applications to deliver analytics and formulate reports due to the fact that this does not afford planners a singular view of the logistics chain and provides a barrier toward standardization.
Supply chain analysis of inputs and outputs between firms, prices and value can get complicated, so it is vital to have a comprehensive system in place.
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File Under: General Supply Chain