Earlier this year SupplyChainDigest ran a piece titled "CVS's Kevin Smith on Supply Chain Management."
Here is an key expert from that article:
“Supply chain strategy is very hard to get your arms around,” Smith agrees, “in part because it never really ends.”
At first, he said that there also isn’t really a right or wrong answer for a supply chain strategy, implying there may be several paths to the same goal, but then he qualified that thought: “It doesn’t have to do with all the tactical stuff we need to get done every day to run our businesses. A strategy is not about describing how we keep getting boxes out the door. It’s a 3, 5 or 10 year lookout that is coordinated with your business so that the supply chain is servicing the business effectively.”
Key to that is a chief supply chain officer that is able to articulate and sell that strategy to the top.
“If you can demonstrate to the CEO or CFO that you have a good plan that is going to add to the bottom line, you’ll go a long way. Let’s face it, today the top lines are shrinking for most companies. If you can show how supply chain can add profit to the bottom line, you’ll get their attention.”
This quote reminded us of the value of continually evaluating your supply chain and being able to prove the value to upper management. We have seen many firms using our network optimization (LogicNet Plus XE) and inventory optimization (Inventory and Product Flow Analyst) solutions just for this purpose. That is, these solutions were used to keep the supply chain strategy current and to provide optimization- and fact-based proof of the value.