Fine tune your SCM
World over management honchos have been spending sleepless night over the business challenge of enhancing and improving their supply chain effectiveness. However, to just draw out a basic operational reference model for supply chain management success, we have highlighted the troika of strategic, tactical and operational approach to the SCM business problem. In this piece, we will be outlining the first element of the troika – which is the ‘strategic element’, while the other two elements shall be dealt with in later write-ups.
Basic strategic initiatives to successfully achieve SCM efficiency are:
•Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities
•Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics and integration
•Coordination of product design initiatives, so that new and existing products can be optimally integrated into the supply chain
•Technology infrastructure integration and reliability to support supply chain operations
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