Page 27 - Logistics News - May 2021

S UP P LY CH AIN

Making data-driven decisions to

improve supply chain performance

By Calum Lewis, Founder and Principal Consultant of OP2MA

The supply chain for any business is not a simple, linear chain of activities; it is a dynamic network of
integrated processes, technology and people.

ith many CEOs not considering supply chains targets the most beneficial actions. Supply chain is inarguably
until something monumental goes wrong, an untapped opportunity for many companies, with most
Worganisations need to develop coherent companies not looking at their supply chains and reaping
strategies and make data-driven decisions to improve supply these benefits until something goes wrong. Understanding
chain performance. Achieving excellence in supply chain how operational performance can drive competitive
management can deliver sustainable growth and superior advantage and disrupt markets in the face of uncertainty,
financial results. turbulence and increasingly demanding customers is a
challenge. But now, more than ever, is the time to optimise.
The essential starting point for a supply chain review is
to confirm how current supply chain performance is driving How can companies do this?
financial outcomes. Taking a systematic, structured approach Businesses need to consider a three-stage process: a health
that aligns key operational performance measures to return on check, diagnostics and transformation. The health check aligns
investment (ROI) is fundamental. It can show how the day-to- operational performance to ROI to systematically qualify
day operations of your business determine financial results. opportunities and define improvement priorities. It should L O GI S T I CS NEWS
scale the opportunity offered by supply chain transformation.
With clear, fact-based insight and understanding, a Diagnostics then identify, in detail, the necessary changes to
tailored transformation programme can be developed that process, organisation, technology and infrastructure to reset

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