The last 24 months of disruption have shown that agile and resilient supply chains are essential for organizations to be profitable and survive. There will always be disruptions and unpredictable events and companies need to be ready. To ensure companies are ready and to successfully manage supply chains, it is essential to conduct regular reviews. There are five key supply chain areas that influence the performance – production, inventory, location, transportation and information. These areas need to be carefully monitored and managed to achieve the ideal balance between responsiveness and efficiency, depending on the need of each individual business.
There is no denying that a review can be of infinite value when it comes to decision-making. But how does a company know when it’s time to conduct one?
What is a Supply Chain Network Review?
A supply chain network review is an in-depth and methodical approach to evaluating a company’s logistics networks. This approach can be configured according to scope, size and complexity to meet the desired outputs. A full scope view will give a holistic view of the supply chain to increase visibility and performance through adequate information sharing in real-time.
The Main Features of Supply Chain Network Reviews Include:
- An iterative approach to ensure that client alignment is maintained.
- Project management tools (risk registers, project plans, action logs, etc.)
- Additional insight delivered in audit phases.
3 phased options:
- Evaluating the current problems.
- Determining future strategic options and the benefits thereof.
- Providing future benefits and costs with sensitivity analysis.
When Should You Carry Out a Supply Chain Review?
There are some key events that should trigger a supply chain review. Here are some reasons why a company should conduct a supply network review:
When a company is taken over, has a new CEO or an internal reorganisation it is an excellent time to check that the company is running as efficiently as it can. Processes are fit for purpose when originally set up but over time may not be the best way for the company. A change in leadership is a good opportunity to re-evaluate supply chains to ensure they align with the changes taking place.
Business Strategy Review.
When there is any challenge to the status quo, for example Brexit and Covid, it is a good time to check that your operations are running as smoothly and efficiently as possible. Are your processes still appropriate? Do you have relevant key performance indicators to measure profit, growth, customer service?
Reaction To Business Change or Changing Customer Needs.
A supply chain must be able to evolve parallel to any changes that are made within a company. This includes inventory or customer changes, Brexit impacts, entering a new country or adding a new channel to the market. Re-evaluating your supply chain may be crucial to surviving any significant company changes. Customer needs are changing. There are expectations for companies to be more sustainable and environmentally friendly. Customers want products faster and expect innovation and creativity.
Following Ongoing Frustrations.
Often, companies are faced with issues that they can’t seem to resolve, e.g. substandard service levels, capacity issues, lack of supply chain visibility, etc. One of the best ways to resolve these issues is to perform an in-depth independent review of the entire supply chain.
When your supply chain can’t sustain your budget, you face serious financial risk. People may be looking to review their supply chain when facing blown budgets, a loss of customers, unexpected year-on-year increases, etc. A review can be the best way to find a solution for companies that want to find practical resource management and cost savings.
The Benefits of a Network Review
Your company can reap many benefits from conducting a supply chain review:-
- An in-depth, independent look at the strategies you might need for the future with a client-focused perspective, where you will know exactly what you need for decision-making and resiliency.
- A configurable assessment depending on your requirements, budget and circumstances.
- A look at practical, real-world solutions according to achievable goals, both operationally and financially.
- Consider plausible solutions regarding development improvements and create new options to test out and validate for best long-term results.
At Bisham, our team has the expertise and 30 years of experience to help you with every step of supply chain management (SCM) to gain a competitive advantage.
For more information on how we can help you to conduct a supply chain review to optimise your business optimisation, contact us today on 01628 487000 or email firstname.lastname@example.org.
We offer several different levels of review from ‘Network Review Lite’ to a ‘Full Network Review’