5 Key Drivers for Optimising Your Supply Chain

Posted by Jim Houghton on 30-Jul-2015 09:10:00

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Are you delivering on your supply chain management objectives?

Possibly your trigger for embarking on this investment was an ERP based transformation or a supply chain restructure. However, regardless of the original driver it is almost certain that the end game was an improvement in one or more of your core supply chain performance measures: customer service, inventory, asset performance, planning efficiency or speed of response.

Have you delivered on all of these? If so, congratulations, we applaud you and wish you well on the next leg of your supply chain journey. However for the many organisations that continue to struggle to move the dial on these measures now this is the time to refocus on your objectives and get your investment working for you.

We believe all supply chain planning initiatives should be directly linked to one or more of the 5 planning value drivers below:

  1. Planning Agility

While organisations are hitting the ceiling in terms of improved forecast accuracy, technology advances have enabled a quantum shift in the volume and speed of demand signals flowing through the network. To take advantage and to truly achieve the status of a responsive supply chain, a step change in planning cycle time is required.

  1. Inventory

Efficient inventory management is achieved when the right methodology is applied based on the product classification, supported by automated planning against the defined inventory policy. This allows planners to focus on the exceptions and driving performance.

  1. Customer Service

No matter how big or small your business is, excellent customer service is fundamental to success. Price is no longer the deciding factor for customer churn, the overall poor quality of customer service is. 80% of your revenue will come from just 20% of your existing customers (Gartner)

  1. Asset Utilisation

Asset Utilisation is more than just the efficient operation of equipment in your factories – it needs to be focused on every asset in your supply chain to realise the true potential. An integrated supply planning process and information set provides the end to end view required to enable planners to make the correct decisions, balancing the inventory and asset utilisation trade-offs while still meeting the customer service objectives. 

  1. Efficiency

Increased planning efficiency is one of the most common objectives of investment in integrated supply planning systems – but realising this benefit requires more than just software deployment. Your planners must be fully on board with the system and understand and accept their role in relation to it.

Delivering on these five factors is essential for optimising your supply chain management processes. Our SAP APO Health Check Service can help you take a fresh look at how your investment is working. The methodology will allow you to identify within a few weeks where you or your system is not delivering in comparison to leading supply chains and provide a clear, actionable plan to optimise your business processes and deliver on your initial objectives.

Download our whitepaper “Are you Getting the Most out of Your Investment in APO?” to learn more.

Are you getting the most out of your investment in APO?

For more information on APO Healthcheck services, contact Olivehorse's Business Development Manager:

Trisha Heah

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