{"id":5560,"date":"2021-11-29T17:54:24","date_gmt":"2021-11-29T12:24:24","guid":{"rendered":"https:\/\/www.letsdigitalmarketing.com\/blogs\/?p=5560"},"modified":"2023-07-09T18:32:15","modified_gmt":"2023-07-09T13:02:15","slug":"supply-chain-and-logistics-strategy-hitchhikers-guide-by-simplifiedblogs-com","status":"publish","type":"post","link":"https:\/\/www.letsdigitalmarketing.com\/blogs\/supply-chain-and-logistics-strategy-hitchhikers-guide-by-simplifiedblogs-com\/","title":{"rendered":"Supply Chain And Logistics Strategy : Hitchhiker\u2019s Guide By SimplifiedBlogs.Com"},"content":{"rendered":"\n

Understanding \u200bSupply Chain And Logistics Strategy<\/strong> \u200bare crucial to properly implement it. Supply Chain Management also called \u2018SCM<\/strong>\u2018 that allows businesses and companies<\/a> to build, develop and execute the process of efficient flow of \u2013 Suppliers, Manufacturers, Distributors, and Customers. \u200b<\/p>\n\n\n\n

So, that the production and distribution are achieved \u200bcost-effectively<\/a><\/strong>.<\/p>\n\n\n\n

It\u2019s much more difficult than it sounds. Most of the supply chain and logistics businesses and companies<\/strong> <\/a>around the world face the situation and struggle to achieve success a top-level supply chain and logistic management.<\/p>\n\n\n\n

To accomplish the mission of \u200bbuilding the supply chain and logistics strategy<\/strong> \u200band \u200bimplementing the process \u200b<\/strong>which is a challenging task. Any supply chain and logistics company can consider the basic SCM Strategies as well logistics strategies into consideration and implement them into their business process<\/p>\n\n\n\n

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Before going deep dive into understanding and building Supply Chain and Logistics strategy for the industry, you need to separate the \u2018Supply Chain<\/strong>\u2018 And \u2018Logistics<\/strong>\u2018. Because if you\u2019ve been in this field for while, then you are well aware of both as a distinctive entity.<\/p>\n\n\n\n

And also this is going to enable you or the marketing team to build proficient strategies for both.<\/p>\n\n\n\n

A logistics strategy basically means finding the most efficient manner of distributing goods across national boundaries or international boundaries, along with maintaining a higher level of integrity and services. \u200b<\/strong><\/p>\n\n\n\n

Talking about \u200bSCM Strategy \u200b<\/strong>or \u200bLogistics Strategies<\/strong>, it is important to keep in mind is that there can be several strategies to incorporate the process of supply chain and logistics. \u200b<\/p>\n\n\n\n

But introducing the marketing team to study the supply chain and logistics process, to derive what works best for the company. And how anything in a business can be achieved efficiently. \u200b<\/p>\n\n\n\n

Supply Chain And Logistics Strategy are highly influenced by several factors. So, keeping in mind all those factors is really important and beneficial to make good strategies, that work. \u200b<\/p>\n\n\n\n

What are those factors that influence the supply chain and logistics strategies in a business?<\/strong><\/p>\n\n\n\n

Make sure you\u2019ve acknowledged all the factors that generally influence the supply chain and logistics strategy in the industry. I\u2019ll be certainly writing a separate post about it. So, you may like to subscribe.<\/p>\n\n\n\n

Why do so few businesses have a supply chain and logistics strategy?<\/strong><\/p>\n\n\n\n

This hasn\u2019t changed much over the last 20 years. It\u2019s really frustrating to see so many SCM & Logistics businesses that struggle to put a supply chain and logistics together but it\u2019s not that hard.\u200b<\/p>\n\n\n\n

What I\u2019m going to show you in this blog \u2013 is \u200bhow to put a Supply Chain And Logistics Strategy together and really quickly?<\/strong><\/p>\n\n\n\n

In this blog, I\u2019m going to race through this, there\u2019s quite a bit of content but it is going to be enough here for you to actually put working SCM strategies. \u200b<\/p>\n\n\n\n

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Understanding Big Gap In Supply Chain And Logistics Strategy<\/h2>\n\n\n\n

The best way to understand and come across a really balanced supply chain and logistics strategies are to put the effort into finding a big gap in supply chain and logistics strategies because that’s where everything starts. <\/p>\n\n\n\n

The executive team actually worked out the vision of the mission and the objectives for the business and they know exactly what’s happening. The senior executive person who does the product picking in the warehouse really understands that’s happening and that’s the big ga[p in supply chain strategies<\/p>\n\n\n\n

People you know, develop it way up here and it\u2019s very conceptual and it\u2019s hard for people to understand lower down in the organization.<\/p>\n\n\n\n

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Importance Of SCM And Logistics Strategy \u200b<\/h2>\n\n\n\n

A lot of businesses<\/a><\/strong> are burning money in the supply chain without having a well-explained and implemented supply and logistics strategy. There was a study done years ago that actually identified that glitches in the supply chain.<\/p>\n\n\n\n

The found glitches caused an average fall of 8.6% in shareholder value.<\/p>\n\n\n\n

So, you know a strategy is so important to keep people focused on doing the right things so that you don\u2019t get these supply chain glitches.<\/p>\n\n\n\n

And you might be surprised that, in the recent repeated survey, those results have been the same over about the last twenty years or so.<\/p>\n\n\n\n

We ask people does their business has a supply chain strategy and if you don\u2019t. \u200b<\/p>\n\n\n\n

Do you think it impacts your business performance? \u200b<\/strong><\/p>\n\n\n\n

If we look at only these charts below, only thirty 9% of businesses actually have supply chain strategies. \u200b<\/p>\n\n\n\n

Documented people understand it and of all of those people who don\u2019t have one guess what 65%.<\/p>\n\n\n\n

Yes, that\u2019s 65% believe that impacts the performance of their business well put one together, it\u2019s not rocket science. \u200b<\/p>\n\n\n\n

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Supply Chain Management Model \u200b<\/h2>\n\n\n\n

So there\u2019s a couple of tips that I\u2019ll share this you on putting a strategy <\/strong>together in your business, regardless of how big the corporate is. You can implement these strategies in your business too.<\/p>\n\n\n\n

Components Of The Supply Chain<\/h3>\n\n\n\n
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We\u2019ve got three interlocking circles in the image above – <\/p>\n\n\n\n

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  1. The Strategic  \u200b<\/strong><\/li>\n\n\n\n
  2. The Financial  \u200b<\/strong><\/li>\n\n\n\n
  3. The Service  \u200b<\/strong><\/li>\n<\/ol>\n\n\n\n

    And \u200bwhy is that so important? \u200b<\/strong><\/p>\n\n\n\n

    Well, these circles interlock, you see if we get, \u200b<\/p>\n\n\n\n

    The Strategic \u200b<\/strong>aligns with \u200bThe Financial<\/strong>. \u200bThen we get very happy shareholders.  \u200b<\/p>\n\n\n\n

    If we get \u200bThe Service<\/strong> aligns with\u200b \u200b<\/strong>The Financial<\/strong>, \u200bthen we get very happy customers.<\/p>\n\n\n\n

    And if we get \u200bThe Strategic<\/strong> and \u200bThe Service<\/strong> \u200balignment right, we get a happy team because they know what they\u2019re supposed to be doing. \u200b<\/p>\n\n\n\n

    I\u2019ve just simplified it by putting three things against each of these elements of the strategy in terms of the business strategy.<\/p>\n\n\n\n

    And then on the service alignment of these 3 things, to focus on having customer service policy and inventory policy, having a good planning process, and making sure that we have good inventory management practices are in place. \u200b<\/p>\n\n\n\n

    So, we can have a list of 50 things that you have to get right in the supply chain but I reckon those three interlocking circles with 9 elements around. If you get those right, not only will your supply chain actually be known in the best of best which is the top 20% of performers? \u200b<\/p>\n\n\n\n

    But we see amongst many companies if they get this right there in the top 2%. So the simple way that I used to explain this, that you have to start from the top view work down, and come up with three simple objectives for your supply chain.<\/p>\n\n\n\n