Drivers of supply chain excellence
In order for a company to achieve excellence in its supply chain, they need to follow and implement six drivers of supply chain excellence.
The six drivers of the supply chain excellence are:
Finish all the fat from the business. By fat means eliminate those resources which are of no use and are unnecessarily consuming time or money.
Speed is one of the most important drivers. One should always be ahead of their competitor and therefore should bring new innovations before their competitors.
All supply chain parts should be interconnected with each other in order to achieve excellence. For example your supplier, customer should all be interconnected with each other. Suppose you have 2 product of X left out of 10 from your stock, your customer should know that you have a stock of product X and on the other hand your supplier should know when to provide with new stocks before any stock out occurs.
Every part of your supply chain should be in your knowledge. For example, you should be well aware that where your fleets are? Which routes they are moving? What is the capacity they are carrying? How much more can be stored in your warehouses? Etc.
Focus on your core areas of the supply chain and remaining areas which are not your specialty can be outsourced. For example, a company can outsource its logistics to another company.
Your implementation of plans should be flawless in order to achieve excellence.