Everything old is new again: The 7 Principles of Supply Chain Management
I get a lot of emails every day with tons of content. My job is to surf these topics and find the pearls of wisdom worth writing about and sharing. Today, I fell upon this article courtesy of Supply Chain 24/7. The material concepts are so relevant that at first I thought it had been published recently. Reading through, it turns out this was published over 20 years ago. To me, that means that we, as supply chain professionals, still have a ways to go in instilling these concepts into daily practice at the organizations where we work.
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The 7 Principles of Supply Chain Management
Principle 1: Segment customers
based on the service needs of distinct groups and adapt the supply chain to
serve these segments profitably.
Principle 2: Customize the
logistics network to the service requirements and profitability of customer
segments.
Principle 3: Listen to market
signals and align demand planning accordingly across the supply chain, ensuring
consistent forecasts and optimal resource allocation
Principle 4: Differentiate
product closer to the customer and speed conversion across the supply chain
Principle 5: Manage sources of
supply strategically to reduce the total cost of owning materials and services
Principle 6: Develop a supply
chain-wide technology strategy that supports multiple levels of decision making
and gives a clear view of the flow of products, services, and information
Principle 7: Adopt
channel-spanning performance measures to gauge collective success in reaching
the end-user effectively and efficiently
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About FarStar: FarStar is boutique consulting firm with a focus supply chain transformation, of which a key lever is Sales & Operations Planning. With team members located in Canada and the US, the company has extensive experience across a wide range of industries including aerospace, defence, high-tech/electronics, and industrial products in a variety of business environments, ranging from make-to-stock to engineer-to-order.
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About FarStar: FarStar is boutique consulting firm with a focus supply chain transformation, of which a key lever is Sales & Operations Planning. With team members located in Canada and the US, the company has extensive experience across a wide range of industries including aerospace, defence, high-tech/electronics, and industrial products in a variety of business environments, ranging from make-to-stock to engineer-to-order.
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