Competition within the supply chain industry is fierce. Internal executives, third-party providers and industry consultants all have their own special sauce strategies to navigate the twists and turns of the supply chain. Touting a company's strength is important for shareholders and marketing efforts. But value can be generated by recognizing operational deficiencies, and seeking out partner companies with complementary competencies. By this initiative, both companies capture or retain the ultimate prize - the customer. Sometimes a company's best choice for a partner is the least expected or desired - a competitor.
If the time is right for U.S. manufacturers of all sizes to consider modernizing their operations, it is important to first look at modernizing their supply chain and logistics operations in order to optimize potential investments. Manufacturers must think holistically about their business before making these decisions, and this includes looking at their supply chain and distribution models and the impacts of these investments on their operations.
The profit economy. You won't get a lot of results if you Google the words. It's not a commonly heard term in the business world. You might even ask if it makes any sense. Isn't the economy all about profit?
For most companies, growth has slowed. Profits are sluggish. Complexity reigns and cycles are longer. The challenges and opportunities of business are greater. Supply chain excellence helps a company to better balance demand and supply. It also helps companies to be more resilient: weathering demand and supply volatility while maximizing opportunities and mitigating risks.
This month, the Supply Chain Insights team will announce the Supply Chain Index, a formulaic representation of supply chain excellence based on market valuations. It will be launched during a webinar on April 25, 2013, and through a series of reports that will run in our May newsletter and throughout the summer. Here, I would like to share some background information on the Index and how I intend to use it in developing a higher level of research.