A flexible supply chain organization requires not only a strategic leader, but also input from managers who represent the traditional supply chain functions of planning, sourcing, manufacturing, logistics, and also sales and marketing, among others.
Tight Integration with Business Units and Suppliers
Integration of the supply chain organization with other functions and across the extended supply chain is the bedrock upon which flexibility will be built.
A supply chain that is integrated with other business functions is especially important as companies enter new markets and launch additional products, adding suppliers and processes along the way. An integrated organization enables the company to map out supply chain processes as products and services are designed, rather than after the fact. For these reasons, a flexible supply chain organization should include decision-makers from product and service development, marketing and sales, finance, sustainability, ethics and compliance. This approach is an extension of the “design for manufacturing” concept that has been around for some time. Flexibility is gained by designing a product along with the supporting supply chain processes, and this can be a key differentiator.
At the same time, some organizations are extending their planning to external organizations such as contract manufacturers, third-party logistics providers (3PLs) and even customers. One thing is certain: Real flexibility demands strong, collaborative relationships with key suppliers and supply chain partners in order to jointly address capability gaps and help mitigate supply chain risks.
To get there, companies should first identify strategic and core suppliers that are central to business strategy and operations. These strategic suppliers will require a more targeted investment in development and management than transactional suppliers of commodity goods and services.
