DESIGNING AN EFFECTIVE GLOBAL SUPPLY CHAIN
BY NATE ROSIER
lobal supply chains have seen incredible amounts of disruption in the last couple of years. Supply chain leaders have been left to pick up the pieces of inconsistent supply and demand patterns, unforeseen natural disasters, and blocked ports, all while maintaining business as usual, and success has not been guaranteed. Responding to disruption as it occurs is one important aspect of managing a successful supply chain, but what would it look like to design your global supply chain in a way that proactively prepares for disruption before it happens?
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What Makes an Effective Global Supply Chain? Global supply chains are incredibly complex, with variables such as differing holidays and weather conditions likely to impact service levels throughout the year. The key to creating an effective global supply chain is starting with the right people, processes, and technology so your operations are prepared as best as possible for any unforeseen disruption. In order to operate a successful global supply chain, leaders should focus on three main areas: efficiency, resilience, and simplicity.
Efficiency in the Global Supply Chain Having efficient processes baked into your operations will not only increase
service levels but will also reduce cost in the process. Since one main goal of a successful supply chain network is to optimize service levels and cost, this is a really important starting point for supply chain leaders. Efficiency is especially important in regard to cycle times, transportation, operations, and forecasting and planning. Cycle times – Analyze the time it will take to move your product and what the cost of that movement will be. Factors to consider are cost and location of inventory and potential missed sales. Transportation – Transportation is one of the largest costs for supply chain leaders, so increasing efficiency to reduce that cost will be critical to managing a successful global supply chain.