Why is a Map needed? The network of suppliers and customers for your organisation will not become ‘integrated’, because each is an independent organisations with their own business objectives and policies. The need is therefore to build a ‘body of knowledge’ about customers, suppliers and the supply markets on which your organisation relies. An assumption can be that by acquiring … Read More
Segment inbound supply items to better understand risks
Supply Chain elements The global trading situation contains multiple risks, so not understanding your organisation’s core and extended supply chains is a risk to the business. To gain this understanding requires an analysis of the main elements within an organisation’s supply chains. These are: customers, finished goods inventory, suppliers and inbound supply items. For inbound supply items, an increased emphasis … Read More
Supplier Risks in Supply Chains identify their Segment
Uncertainty and Risk Segmentation of activities within your organisation’s supply chains is an early step to reduce the complexity of an organisation’s supply chains. Segmenting customers on the basis of ‘cost to serve’ was discussed in a previous blogpost. Here, the discussion is concerned with segmenting suppliers. But where many still regard buy price and total spend as the main … Read More
Resilient supply chains are required in the near future
A different structure When will the next major disruption to your organisation’s supply chains occur? And what will be the cause – climate, conflict, pandemic, financial? For each of these questions there is not an answer, although many predictions. But if supply chain professionals wait until a disruption occurs before responding, then it may be too late for the business. … Read More
Customers in supply chains have their Cost to Serve
Cost to Serve for your customers If sales are made to customers without knowing the total cost of the business relationship, there are two major risks. The first is selling products to a customer that is thought to be profitable, but is not. The second is to negotiate increased sales or higher levels of service with customers that already incur an … Read More