Supply Chain Optimisation
What is supply chain optimisation?
It is a combination of processes and systems such as AI, blockchain, and IoT to improve the efficiency of the supply chain network. A responsive and efficient supply chain is vital for a top-notch customer experience. It makes the supply chain sustainable and profitable for the business.
The benefits of supply chain optimisation
The top benefits of optimising supply chains are:
- Removes data silos and helps you meet customers’ needs.
- Innovates and adapts to meet the changing customer needs.
- Delivers a competitive advantage with real-time decisions and execution-oriented applications.
- Ensures sustainability management by optimising the supply chain to address the social, economic, and environmental impact.
Supply chain optimisation techniques
A strategic review of the existing supply chain network will result in short-term and long-term goals for optimisation. The review also considers contingencies such as labour and material shortages. The goal is to move from a reactive to a proactive approach.
- Strategic planning: This is where you set the inventory management, production, transportation, and distribution goals. The management forecasts the demand and allocates necessary resources.
- Tactical planning: This includes one or two years of planning to support long-term goals. Tactical planning sets the timing for each step and determines the capital and skills required. It also considers outside resources such as consultants and service providers.
- Operational planning: At this point, you translate the strategy into daily activities such as plans, policies, and programs. It also encompasses the daily, weekly, and monthly activities of your business.
- Contingency planning: It takes care of emergencies such as labour shortages, weather events, and loss of any major suppliers. The purpose is to prepare for such an event and shorten response time proactively. It also minimises any internal or external disruptions due to delays and shortages.