What Differentiates the SC Winners
Number Two: Increasing SC Resiliency through Demand-Driven Operations
The second capability investment mandate is focused on increasing the resiliency of the SC operating model to become more demand-driven in responding to customer requests without relying on inventory or unnecessary resources. High performance supply chains have a different design and capability structure. The new supply chain operating systems are designed to respond to customer requirements within their window of demand without relying on excess inventory or idle assets. In this new design, upside and downside flexibility and speed are built into the operating system design. Many firms are migrating to a more demand-driven mindset. Their rate of innovation in this area is often governed by the nature of their supply chain complexity challenges, manufacturing economics, competitor pressure, customer demand requirements and shareholder expectations in the marketplace.
The ALR team has a deep history in working with the top leaders in the supply chain field over many years. As a learning partner in the design and deployment of these leading models, our team acquired a deep understanding of the formula for success. This thinking is incorporated within the firm's methodologies and knowledge base.
One of the key determinants of success in high performance supply chains is increasing the velocity of the supply chain to sense and respond to changes in demand. If we are to increase the agility of the operating system to respond faster to demand changes, we must carefully examine the key flows within the supply chain operating system. ALR coaches your team in deploying diagnostics to identify and remove constraints in four (PICO) supply chain operating system domains:
- Processes/physical supply network flows,
- Information flows,
- Cash flows and
- Organizational flows across functions and trading partner members.
The firm then uses a series of high performance supply chain capability frameworks (PICO DNA) to identify new capability solutions to address these constraints and accelerate the four PICO flows.
To learn more about the third capability investment Building Skilled Mastery of Supply Chain Innovation