Most companies that implement a supply chain view of their operations struggle to find an optimum balance between responsiveness to customers - and cost efficiency. Wasn't it Henry Ford that said his customers can "... have any color they want, as long as it is black." The responsiveness/efficiency balance can depend on a number of factors. Some of the obstacles that supply chain managers must consider as they develop strategy include:
- Increasing Product Variety; product proliferation is rampant in today's markets.
- Shorter Product Life Cycles; many product life cycles now are measured in months, not years, as has been common is earlier days. This is true for not just niche products - commodities too.
- Increasingly Demanding Customers; delivery lead times, costs, product performance, inability to pass through cost increases. Customers today (who evaluate their own supply chains) are demanding faster fulfillment, better quality, and better performing products for the same price.
- Fragmentation of Supply Chain Ownership; many firms are less vertically integrated than they were in previous decades, and many have outsourced "non-core" functions and activities.
- Globalization; supply chains are increasingly global which can have cost benefits, but coordination across distant elements and time zones can make management more complex.
Synchronous LLC is committed to maintaining a continuing dialogue on operational excellence and best practices for the process manufacturing industry. To pose a question, contribute a best practice, or otherwise add to the dialogue, send a note to RobBaldwin@SynchronousLLC.com . To subscribe to our weekly newsletter send your preferred email contact address to Webmaster@SynchronousLLC.com with SUBSCRIBE in the subject line.
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