EMC members from Atlantic Canada and Ontario Consortiums met recently to take a deep dive into the various components that make up the Supply Chain; does effective management of the entire supply chain result in operational excellence?
Our thanks to Kim Wolf, of Kim Wolf Consulting, for providing her subject matter expertise that the stage for break out room discussions.
Defining Supply Chain / Operational Excellence:
Supply Chain is the system and inter-connections of organizations, people, activities, technologies, information, and resources involved in production and distribution of a product.
In a world of continuous change, it is critical to understand the aspects of supply chain and be aware of the challenges and opportunities within each. To identify those opportunities within a complicated system, the first step is to break Supply Chain into the key areas, followed by a SWOT (strengths, weaknesses, opportunities, threats) analysis to determine what the company should leverage and where the vulnerabilities are:
- Customer Service
- Demand Planning and Forecasting
- Inventory Management
- Warehouse and Distribution
Further to this, Kim led the group through the process of determining, through a risk assessment (probability X severity on a scale of 1-4) exercise, where the greatest vulnerability exists. As a result, an organization can proceed with an appropriate action plan.
Participants followed through in break out groups to create a SWOT analysis for Procurement, Demand Planning and Forecasting, Manufacturing, and Inventory Management and then regrouped to share results.
Results highlighted tremendous strengths and opportunities within organizations as well as the opportunities and threats. Some are obvious while others take a bit of thinking to get to. The two themes that were common to all areas:
- Staffing challenges
- Material and commodity shortages
As companies move through these challenges, an important recognition is that your competitors are experiencing like conditions. There is a common baseline but also a race to resolve.
Follow up to participants included completed SWOT analysis and risk analysis (where applicable), SWOT analysis template as well as a Supply Chain SWOT analysis offered by a member as a resource.
For more information, please reach out!