Monday, September 21, 2009

Supply Chain Holds the Future for Everyone

A recent article in Supply Chain Asia Magazine points out how critical managing your supply chain is to the success of your business. The ability to understand and optimize logistics operations, they suggest, may well be the “make or break” difference for companies over the course of what is likely to be a challenging and difficult environment just ahead. Here is what they said:

Supply Chain Holds the Future for Everyone
As the economic conditions get harder, there will be just one mantra for CEOs and their boards: “Manage for cash”. For many companies, the extent to which they can do this – even their survival over the next 18 months – lies in how well they manage their assets in the supply chain.

While supply chain thinking and ideas of best practice have developed and stabilized over the last 30 years, their application in most companies is still relatively immature even though they have the potential to transform almost every business in every sector. Much of this success will depend not on new techniques but on the more effective application of techniques with which managers may already be familiar. However there is one key new capability required for the current economic climate.

Companies may do well in adopting the 5 maxims below for success:

1. Build customer service excellence into your supply chain
2. Become the preferred customer of your key suppliers
3. Design, plan and execute for the excellence
4. Synchronize and integrate to eliminate waste and cost
5. Finally, collaborating in order to share resources and leverage scale is the new mantra for competitiveness in a difficult economic world.

Source : Supply Chain Asia Magazine

Sound familiar? They are telling you what we have been telling you: Business is tough, but there is something you can do about it.
Take advantage of leverage to control costs, create a winning team which includes your suppliers and your customers, and above all, make sure the system you have in place reflects a well thought out plan to wring every possible advantage from your supply chain.

When you’re ready to start, give TOTALogistix a call.

Kirk Shearer, COO 800-989-0054 x103

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