Supply chain management
Most importantly , given the future is always uncertain , do you know your demand plan for different scenarios that need to be modelled in the supply chain ?
Being prepared for nasty and indeed pleasant surprises is the third key element for managing the whole supply chain – has the senior leadership team taken the time to identify different scenarios and discuss carefully how all parts of the business , and indeed your whole supply chain , would fare in each case ?
End-to-end management
From having advised numerous manufacturers , I can honestly say such discussions are the single most important factor to successfully delivering a long-term strategy , and businesses whose leadership fail to do this , usually from constant short-term fire-fighting , have little chance of managing their whole supply chain as they won ’ t see the problems coming until it is too late . We cannot predict the future , but we certainly can be preparing to ensure being in the best position to know how to react !
The ability to manage business partners , especially indirect ones , involves sharing data and discussing ‘ what ifs ’ based on your demand plans for different scenarios . But this is difficult for organizations who lack confidence in their own demand plans , and also for those too engaged with short-term problems rather than longer-term strategic planning .
Managing the whole supply chain end-to-end is vital for delivering a business strategy , and those that do it successfully are those manufacturers with leadership teams who have created the pillars for success – a clear
strategy , thorough discussions on how different scenarios will impact the whole business , and a credible demand plan that is for at least two years , not just the next few months .
Les Brookes is a Partner at management consultants Oliver Wight EAME . Oliver Wight is a world leader in IBP consulting ( Integrated Business Planning ). Its approach is quite different from other consultancy firms . Its industry experts transfer knowledge to clients through coaching , mentoring and education workshops , so they learn how to make improvements themselves . ■
www . oliverwight-eame . com
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