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Breaking the Mould: Why Cookie Cutter Supply Chain Models Aren’t Enough for Your Business
Global supply chain blogs
Vivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com
Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.
Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.
Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.
Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.
Companies need to have a well-managed and efficient supply chain to remain competitive. However, there is no one-size-fits-all approach when it comes to supply chain management. Cookie-cutter approaches that are too generic can be fruitless and require massive resource mobilization in order work. In this blog, we will discuss the drawbacks of adopting generic supply chain models and highlight the importance of customizing supply chain models to fit a particular situation or a particular organisation. We will emphasize the need for companies to select the right software and implementation partners and to keep the process on track to achieve their objectives. By the end of this blog, you will have a better understanding of how to design and implement a customized supply chain model that fits your business needs.
One size doesn’t fit all
One area which has received significant attention in recent years is supply chain management. Many companies have adopted a cookie-cutter approach to supply chain management, where they implement standardized solutions without considering their unique requirements. This approach can have lots of unpredictable negative consequences. A generic solution may not address the specific challenges faced by a particular company, resulting in inefficiencies and increased costs. Additionally, implementing a standardized solution can require significant resource mobilization, including financial resources and time, which may not be practical for all companies.
It is essential for companies to customize their supply chain models to fit their specific situation and should align with their needs. This approach involves tailoring solutions to meet the unique needs and challenges of a particular company. By doing so, companies can optimize their operations and gain a competitive advantage. To achieve a customized supply chain model.
It is important for companies to select the right software and implementation partners. The software chosen should be capable of addressing the specific requirements of the company, and the implementation partner should have the necessary expertise to ensure the software is configured correctly.
Not all supply chain software solutions are created equal. Some companies have learned this lesson the hard way after investing significant resources in software packages that did not meet their specific needs.
The company in question was a large manufacturer that operated in multiple geographic locations. They recognized the need to improve their supply chain management and decided to invest in a software solution that promised to deliver significant benefits. The package was purchased from a reputable vendor and was expected to provide a standardized solution that could be deployed across all of the company’s operations.
After implementation, it became clear that the software was not well-suited to the company’s specific needs. The standardized solution was too generic and failed to account for the unique challenges that the company faced in each of its locations. As a result, the company struggled to integrate the software with its existing systems and processes, and the promised benefits failed to materialize.
In 2020, PepsiCo announced that it had chosen Microsoft as its preferred cloud provider for its global operations. The partnership involves migrating PepsiCo’s datacentres to Microsoft Azure. Implementing Microsoft 365, and deploying Microsoft’s Power Platform to streamline business processes. The partnership will also leverage Microsoft’s AI and machine learning capabilities to improve PepsiCo’s supply chain and product development processes.
By selecting the right software and implementation partner, PepsiCo is able to enhance its operations and remain competitive in the marketplace. The partnership also enables PepsiCo to leverage the expertise and technology of Microsoft to achieve its business objectives. This highlights the importance of carefully selecting the right software and implementation partner to ensure that the implementation is successful and aligned with the company’s goals.
This example highlights the importance of customizing supply chain models to fit a particular situation. While standardized solutions may seem attractive due to their ease of implementation and lower upfront costs, they can be disastrous if they do not meet the company’s specific requirements. In such cases, businesses can end up wasting significant resources, both in terms of time and money.
To avoid this, companies must prioritize the selection of the right software and implementation partners. They should seek out solutions that are designed to address their unique needs and have a proven track record of success. Additionally, it’s essential to keep the process on track to achieve their objectives by carefully managing the implementation process, training employees, and continually monitoring and optimizing the system.
It is crucial for companies to avoid the cookie-cutter approach to supply chain management and instead focus on customizing their solutions to fit their specific needs. The example provided illustrates the potential negative consequences of implementing a standardized solution that does not address the unique challenges of a particular company. This can result in wasted resources and failed objectives, ultimately impacting the company’s bottom line. Therefore, selecting the right software and implementation partners is critical to achieving success in supply chain management. Companies must carefully evaluate their options, prioritize their specific requirements, and work closely with their partners to ensure a successful implementation that meets their objectives. By doing so, they can optimize their operations, improve efficiency, and gain a competitive advantage in the marketplace.
The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.
Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.
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