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Are Multiple Supply Chains Important (Survey Response 4)

Written by: Jon Hansen

Article Overview: A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why?

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Are Multiple Supply Chains Important (Survey Response 4)

Lynn, Vice President, Kimmel and Associates, Asheville, U.S.

Certainly, modern companies are discovering that they operate multiple supply chain processes, most of them linked to other supply chains to verying degrees.

Let me give a high tech example: Your R&D crew says the bugs should be out of the new amazing world-beater prototype by the end of the year, so you give out initial Invitations to Tender to potential subcontractors. But then R&D puts off their delivery date by six months! Both supply chain planning functions are impacted by this news.

Optimizing a singularly focused supply chain means that many of the components are sub-optimized in deference to an overall system optimization outcome. This principle is even more applicable in multiple-linked supply chains whose goals are to produce an integrated, successful and profitable outcome which mazimises customer satisfaction. Creating new software tools which will be able to integrate these complementary supply chain channels for optimal production is already underway.

Perhaps a new title we might expect to see for future senior corporate supply chain executies would now be described as "Chief Supply Chains Officer" or "Vice President, Supply Chains"

It's never dull!

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Home > Small-Business-Consulting > Jon Hansen > Are Multiple Supply Chains Important Survey Response 4
Article Tags: amazing world, asheville, bugs, chief supply, customer satisfaction, deference, invitations, kimmel and associates, new software tools, optimal production, principle, prototype, six months, subcontractors, supply chain planning, supply chain processes, supply chains, system optimization, vice president



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