Supply Chain is the backbone company. of the It involves the major departments. Supply Chain transformation is only possible with better cooperation of the departments. It means across-functional and cross-organizational cooperation. From a silo mentality between departments to a functioning team spirit, It needs an effective leadership of the CEO which eliminates the lag in the decision making.
Putting every stakeholder of the Supply Chain around the table is a prerequisite to redesign processes end-to-end. Combining the intelligence of the different stakeholders in planning and management of customer demand. It allows to reduce global inventory across the supply chain and share the benefits and cost more fairly.
Cost effectiveness in the supply Chain of your company is a major issue. On average, 6.8% of a company’s turnover is spent on freight cost for procurement and distribution, and 10% of this amount can be spared with transport consolidation and optimization and 8% more with a state-of-the art freight management system (Aderdeen Group 2007, Gartner Research 2010).
Collaborative Planning Forecasting and Replenishment are also a way to improve the on-shelf availability, and so improve customer service.