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Supply chain management

Article provided by Quantum Worx

Strategic process management that delivers operational excellence

In today’s economic (post-covid) business environment there has been a dire need for more organisations to adopt dynamic supply chain strategies across the various industries or sectors. Supply chain strategies provide ways to move ahead of the competition in an increasingly complex marketplace that could be used to move your organisation into a BLUE OCEAN paradigm as opposed to the highly competitive RED OCEAN status quo. To achieve supply chain excellence which in turn leads to operational excellence, organisation leaders and management need to pay particular attention to the details of their infrastructure and process management.

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Viewed collectively and with a holistic narrative, these details can support a more efficient and effective supply chain management process that can promote more aggressive performance goals across such areas as purchasing, general operations, distribution, and value chain.

The integrated approach that sees organisation leaders focusing on internal systems, processes and employee enablement should be the right combination and, answer that leaders need to identify challenges and build solutions to mitigate revenue lost due to redundant or inefficient supply chain methods.

ERP Systems or software applications have been the defining factor for some leaders to gain “Insight” into their suppliers, production, warehousing, variance losses, distribution and customer feedback to the point that every rand is accounted for. ERP systems have thus brought about true visibility but with microscopic detail into the variable losses.

Employee enablement provides our leaders with the ability to pan out over their organisation and focus on how well their employees are utilizing the systems to plan and problem solve efficiently and effectively. How often do organisations bear total cost of ownership losses for adopting a failed system cause by employees that refuse to except the system or unable to comprehend the system processes. Employers have the responsibility to ensure that all system users understand and are accountable for efficiency driven KPI’s. When employees understand the impact of there involvement it effects change to a positive overall efficiency based on their contributions which in turn leads to 5 steps in the right direction of operational excellence.

Process models are never set in stone when leaders adopt a lean approach that could be shifted with slight deviations that can increase production without major CAPEX outlays. Following each process in detail will eradicate procurement, work-in-progress, warehousing and distribution inefficiencies.

Incorporating focus on these three areas will lead to increases working capital, employee satisfaction, highly efficient processes which in turn leads to operational excellence which eventually leads to more customer satisfaction. Operational excellence affords you the ability to focus on what truly is important – “THE CUSTOMER”. These are real value-adds that out-weigh price differentiators in a RED OCEAN scenario which can afford most organisations to adopt a BLUE OCEAN strategy.

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