Doing collaboration: The right way to improve your Supply Chain – Vivek SOOD – Global Supply Chain Group

Doing collaboration: The right way to improve your Supply Chain – Vivek SOOD – Global Supply Chain Group

AUTHOR

chiefstaff

TIME TO READ

minutes 

UPDATED ON

January 8, 2019

Business Networks
Business Networks

Supply Chain Management (SCM) is an essential element of operational efficiency.  SCM is critical to business operations, therefore it is clearly important for a company to know, understand and master the supply chain.

Supply chain’s evolution can be break down into three generations. That is an easy way for companies to understand how to be more efficient and maximize the benefits of a good supply chain.  The three generations of supply chain go from supply chain 0.0 to supply chain 1.0, then to supply chain 2.0 and eventually reach supply chain 3.0.

Now, an important question should cross your mind: What are the differences between supply chain 0.0, 1.0, 2.0 and 3.0?

Supply chain evolution is quite logical. The generation 0.0 represents the absence of supply chain. Business act is then individualistic, each group is on its side working without or with very weak cross-functional communication and relationship. A company which is intending to be a well-established player in its field cannot stay at this stage.

The first main change brought by supply chain 1.0 is communication. Communication channels at horizontal level between different departments are created which is break down the silos. In order to be more efficient, people talk with each other across the departmental line and planning and scheduling become a team work. An ERP System is put into place to formalize communication.

what-we-do-bannerBut such a supply chain can become a little bit inflexible. If a company wants to overcome this difficulty, it has to expand its circle of collaborators. All the groups of the company have to take part in brainstorming and collaborate for the creation of a more structured planning environment. That is the aim of supply chain 2.0: Helping the finance to work together with operations and sales in order to establish a coherent set of integrated business plans to shape one single business outlook that can be agreed on and actionable by everybody.

The next step is to go beyond this to an attractive flexible and structured plan. How can we do it? It is time for the company to reach the supply chain 3.0 and stop taking its positions for granted. The solution is called the flywheel of supply chain 3.0: create collaboration with suppliers and customers in order to create products at lower cost and higher degree of matching with consumers’ expectations.2-300x184

 


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MORE INTERESTING READING
  • Collaboration is everywhere in business these days. Sometimes it’s over-done. It’s everywhere in government as well, and sometimes it’s not very effective. So there’s a right way and there is a wrong way to collaborate. What my study shows is that the first thing is you’ve got to have a very compelling benefit before you collaborate. You need to be picky and scrutinize every project. And that’s the first rule of good collaboration.

    Can you give us an example of something where collaboration was worth the return on investment?

  • Do I search for “What is the difference between Supply Chain Management and Logistics Management? ”
    In between, I found this blog and found new clear mind about SCM 0.0,1.0,2.0,3.0.
    Should I visit any blog which gives my answer Sir?

  • It is well known that supply chain management is an integral part of most businesses and is essential to company success and customer satisfaction.
    my question to you regarding supply chain paperwork and process payments
    Is the movement of information and money as critical in your supply chain as the movement of materials? In other words, does it take longer to create paperwork and process payments than it takes to deliver the goods?

  • Logistics management is oftentimes a top-down system where most innovation, inspiration, and drive comes from management and is filtered throughout the rest of the supply chain team. But studies show that the best way to improve supply chain efficiency is by giving a voice to the subject matter experts that work the details of your supply chain every day. The best solution is to empower your workforce, suppliers, clients, and consumers to create a more efficient supply chain.

  • Process standardization is central to the success of any supply chain strategy. Having a standardized ERP system will increase efficiency while saving time and money. Another benefit is that employees will share a standardized system of tools, which will increase accuracy, encourage teamwork and reduce miscommunication. Waste, mistakes and even fraud are permanent supply chain strategy problems that can be fixed with the right strategies.

  • Such a worthy article Vivek. A flexible supply chain is actually a type of supply chain that has great flexibility to adapt to changing customer demands and shorter lead times. It is usually used where there is a vast range of products which share some basic characteristics and can be manufactured from the same production line. This can be achieved through mass customization.

  • Customer expectations for speed and low cost have reached new highs in our always-on, digital and global world. Economic and supplier volatility is a constant threat to supply chain continuity. Meeting such challenges requires real-time transparency that yesteryear’s applications can’t support. Over the years, organisations have duct-taped together various point solutions to run their supply chains depending upon the size of their organization and problem.

  • A flexible supply chain always delivers value. A flexible supply chain organization requires not only a strategic leader, but also input from managers who represent the traditional supply chain functions of planning, sourcing, manufacturing, logistics, and also sales and marketing, among others. Leading organizations are rethinking their supply chains to craft a strategy that can deftly accommodate broad swings in demand and supply.

  • Inflexibility is the bane of an efficient supply chain. Ironically, the problem is often rooted in supply chain software that years ago was billed as delivering the flexibility that companies needed for fast and adaptable inventory and supplier management, distribution, sales, purchasing, and manufacturing. Manufacturers and distributors have indeed gained important flexibility over the past two decades with implementations of ERP and other supply chain applications and the adoption of the latest trends and technologies.

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