Supply Chain Management: From saving cost to adding value
The Supply Chain Squeeze
The “Supply Chain Squeeze” process is still going on in many companies and that just may still be fine… but when you’ve followed the case studies, used the right consultants and optimized your logistics efficiency, the time finally comes when you need to change the subject and start talking about adding value through your integrated supply chain and not simply saving time and money.
Adding value begins with successfully planning and implementing an integrated approach. Getting the integrated approach to work often comes down to a question of establishing trust, something which ironically can be greater between suppliers than between departments. Imagine the trust factor that lets fierce competitors like Peugeot, Renault and Toyota set up a joint venture in the Czech Republic, sharing intellectual property as well as production capacity!
Your sourcing strategy is important but it’s not just about the cost of manufacturing and transport, your competitive advantage concerns the total cost and viability of your whole supply chain.
