Could Your Supply Chain be Fading? Five Tell-Tail Signs

Could Your Supply Chain be Fading? Five Tell-Tail Signs

AUTHOR

chiefstaff

TIME TO READ

minutes 

UPDATED ON

July 27, 2020

Supply Chain Management

Most CEOs are surprise to discover that what they thought was a well-functioning Supply Chain turned out to hide such a tremendous amount of problems.

Five tell-tale signs that help you recognize a broken Supply Chain:
  1.  Silos mentality - The big companies are often confronted with this problem. The different departments of the firm are not sharing information properly, and in case of failure the departments tend to evade responsibility.
  2. Unhappy customers - The quality of the service is directly affected by a broken Supply Chain. Customers are not only looking for a good quality offer but also reliable one. Brand image is at stake here.
  3.  Struggling sales force, declining market share - The weakness of the reliability of the supply chain makes the work of the sales force more difficult as the brand image of the product is becoming less attractive. Even low prices  are less appealing to the customers, because the competitors win on service. And, when you win by reducing pricing, you encounter the next problem.
  4. Eroding margins - A broken Supply Chain is a  handicap  that hits on both fronts. Rising logistics cost  raises the cost of the goods sold. At the same time, poor service can only be overcome by lower prices.  The company faces a dilemma. Either raise the price to maintain the margins at the risk of losing sales, or accept the drop in profitability.  Most companies opt for the second option - and blame the competition. Only a few recognise the root cause - the broken supply chain.
  5.  Burgeoning inventories and missed deliveries - Many CEOs are surprised to find both the problems at the same time - overflowing warehouses, and missed deliveries. The reason is simple - their supply chain carries the wrong type of inventories, and in the wrong places. People do their best - by hunting around for the right inventory in the shortest period of time, and by expediting. But, a better solution is to carry the right inventory in the right place.

To improve the performance of your supply chain we provide a tailored solution to each of our clients for more information click here or contact us.


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Notes:

  1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.
  2. The date shown above the article refers to the day when this article was updated. This blog post or article may have been written anytime prior to that date. 
  3. All anecdotes are based on true stories to highlight the key points of the article - some details are changed to protect identification of the parties involved. 
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Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

  • What are the five flows of SCM?
  • Why are they important TO YOU?
  • How can you map, track, and optimise these flows to serve YOU?
  • What is the importance of difference between "Supply Chain" and "Value Chain"?
  • What are the stellar case studies of each of the five flows?

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