While progressive organisations consider strengthening supply chain as an opportunity, stagnating organisations consider it as an impediment.
In stagnating organisations supply chain usually operates as a kingdom by itself within the organisation.
Such organisations fail to realise the potential of improving supply chain efficiency and its impact on organisation’s top-line and bottom-line as well as its impact on improving productivity of other functions
While there are number of areas within SCM which can be strengthened, the two important ones having significant impact on organisation’s top-line and bottom-line are:
1. Reduction of cycle time between receipt of orders and dispatch of goods by implementing an efficient sales forecasting module
2. Reduction in cost of RM & PM by implementing a robust system to stop dependence on single vendor and aggressively reduce input prices
Ofcourse when you are disturbing the apple cart there will be tremendous resistance and rage.
However one needs to be brave enough to face the consequences in the best interest of organisation transformation to bring the change
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