SUPPLY CHAIN OPERATIONS STRATEGY
Supply chains are constantly evolving to adapt to the changing needs of customers and consumers. Globalized markets, the generation of new consumption patterns, the irruption of digital technologies and the commitment to environmental sustainability are leading companies to define new operational strategies in their supply chains.
WHAT DO WE MEAN BY SUPPLY CHAIN?
The concept of supply chain encompasses all those processes and actions linked to the complete life cycle of a product, from the time it is manufactured until it is consumed.
Thus, operations related to manufacturing, distribution, marketing, sales, design, finance, and technology are articulated in the supply chain. In addition, the supply chain involves different actors, such as raw material suppliers, manufacturing and assembly companies, and logistics service operators (transportation, warehousing, distribution, packaging, assembly, etc.). In all operations and between all links in the chain, data are generated and information is exchanged, which must be duly processed so that the processes can be completed without interference.
SUPPLY CHAIN OPERATIONS STRATEGY
The objectives to be achieved when defining an organization’s supply chain operations strategy are diverse: customer satisfaction, cost reduction, optimal service level, reduction of inefficiencies, and increased productivity, among others.
SUPPLY CHAIN OPERATIONS STRATEGY AND GOALS
The ultimate goal is to make the company more competitive and in optimal conditions to compete in a globalized market where customers and suppliers can be anywhere in the world. For this reason, it is necessary to define a plan that allows the company to achieve this greater competitiveness and obtain beneficial results that will last in the long term, in addition to providing added value to customers.
According to the Logistics Employers’ association UNO, in Spain, companies that design, organize, manage, and control the processes of one or more stages of the supply chain account for 6% of GDP. In this area, the sector that deals with logistics operations moves more than 500 million shipments and 2,000 million tons per year (2017 data), and the 132,000 companies that operate are key to Industry 4.0 and e-commerce.
On the other hand, in Catalonia, according to the Logistics Observatory published every year by the public company Cimalsa, the weight of logistics sector represents 13.8% of the Catalan economy, manages a volume of 425 million tons (2018 data), and is made up of 27,830 companies that offer logistics services.
HUMAN RESOURCES AND TALENT, ARE KEY TO THE SUPPLY CHAIN OPERATIONS STRATEGY.
Operations that can be considered key in a supply chain are transportation, warehousing, inventory management, and production and procurement planning. But in a highly competitive environment, these operations need to be aligned with other departments in the company, such as sales and marketing. In addition, it is imperative that the company’s management is also aware of the ins and outs of the supply chain and is aligned with the objectives to be achieved.
An optimal supply chain is the best ally for any organization, but its complexity makes it necessary for the company to have qualified personnel in each of the operations and for its logistics service provider to be an ally in achieving the objectives.
Talent in an organization must undoubtedly be linked to the use of information and communication technologies. For this reason, it is necessary for personnel to know how to deal with the technological tools that facilitate operations in a supply chain. For this reason, it is advisable to deploy training actions that enable human teams to implement, use, and get the most out of technological solutions that, in turn, will help facilitate work in different areas, improve productivity, and offer the customer a better service.
The skills and competencies of a human team should not be limited only to their department or activity but should be in tune with the rest of the operations and areas of an organization. Personal skills such as adaptability to changes (internal and external), dynamism (to meet customer needs), communication (to transmit information in a timely manner to customers and suppliers), and functionality (to evaluate different variables that may affect operations or analyze and interpret results) are indispensable resources in an organization.
COLLABORATION AND FOCUS ON CUSTOMERS AND THE ENVIRONMENT
From the perspective of a logistics services operator, in order to design an appropriate operations strategy for the supply chain, it is important to understand the specific needs of the customer and, as far as possible, to anticipate them.
In addition to exchanging information, customers and suppliers must be on the same page when it comes to planning the procurement operations and services that will be required to handle, transport, deliver, and distribute different goods and products, with different origins and destinations.
It is therefore essential to promote integration, coordination, and collaboration between suppliers and customers to generate synergies and achieve cost reductions for both parties. Proper planning means fewer physical and human resources.
Thus, it is essential that supply chains and the operations area are perfectly aligned with customer expectations and with the value proposition of the companies.
Keep in mind that supply chains and operations are no longer a cost center, but a system where value is created for companies and their customers. Markets require supply chains to move from an internal focus to a customer-centric and environmentally sustainable approach, which is an extraordinary challenge, especially for more traditional supply chains within B2B organizations.
The diversification of companies into new markets, the explosion of e-commerce, and the emergence of disruptive companies have changed the needs of customers, who now demand more differentiating attributes, which can only be met by planned and adaptive supply chains that deliver the value promised to customers.
