Supply Chain Engineering

The supply chain world isn’t as straightforward as it once was. Due to volatile demand, rapidly changing costs and increased speed for performance and value, supply chains and supply chain professionals are under intense customer pressure. Further exacerbating this, they are often limited by the planning tools available, overall visibility within the supply chain itself and staff resources. In short, everyone and everything is stretched to the limit.

So how can companies turn this around to achieve well functioning, flexible and efficient supply chains? Developing more of a holistic viewpoint and understanding how all the various components at work in a supply chain are interrelated is key. Often the various activities and steps involved in a supply chain are viewed as separate and siloed parts. While much effort may be put into optimizing the functioning of each of these separate parts one by one, supply chain engineering takes into consideration all the various components and the aim is to focus on the big picture: see the forest for the trees.

From this vantage point, strategies can be developed to engineer the supply chain towards the ideal. This can have many benefits that reach beyond just the immediate supply chain area. From our perspective, a consciously engineered and designed supply chain is vital to the company as a whole. After all, if a company’s supply chain isn’t operating at the optimum it can have a detrimental effect on the overall bottom line and hinder the growth of the business.

Supply chain engineering not only involves the mechanics of how the good or service moves through the chain but also takes into consideration how technology, infrastructure and human resource assets can be leveraged and integrated to enhance operations. Overall corporate strategy is also a consideration so supply chain activities become better aligned with the corporate vision. Instead of the supply chain existing in a separate bubble it becomes an integral part of the whole.

While no one can argue with the importance of having each step and process fine tuned for optimal functioning, supply chain engineering provides a blueprint so all these steps and processes are in sync. It takes into consideration the obvious and not so obvious activities at work in the supply chain so overall strategies can be devised.

Taking the time to consciously engineer a supply chain leads to the creation of a resilient, effective value chain where infrastructure, processes and people are aligned. As a matter of course, the main challenges faced by supply chains today (cost reduction, profitability, risk mitigation etc.) are also addressed. The move from a reactive to a proactive supply chain strategy can only have a positive effect on company sustainability and employee retention.

Linda Craig (@LindaCraigRSVP)
More  Chain insights at www.Retention.ca