Day-to-day business issues keep managers from thinking about supply chain strategy. But pausing to strategize will give you time to focus on the right priorities.
Can supply chain strategy have a profound impact on your bottom line? Without a doubt!
Recently, we worked with a client that wanted to review their supply chain strategy and evaluate many options including the following:
- Do nothing (stay in the same locations)
- Move distribution operations closer to the port.
- Move to a different location in the Inland Empire.
- Move to Nevada.
- Evaluate 3PL options.
- Expand and automate the current facility.
- And more….
In this case, the customer, cost and cash flow impacts could be significant. It is smart to refresh your supply chain strategy every few years (depending on the level of change within your company and externally) to ensure it is best fit for delivering optimal results. What was “killer” one year could leave you in a weak competitive position the next. Are you staying on top of your supply chain strategy and related impacts?