A well integrated supply chain has all the ingredients and capabilities of becoming proponent of growth for the company. Although, typically the vision for the growth of a company shall reflect in its supply chain vision as well, however, the underlying potential of integrated supply chain to become engine of growth for the company is often neglected. It is even more true for small to medium size enterprises (SME) where huge potential for savings as well as growth remain untapped due to low or no recognition of supply chain as a value-added process.
Despite phenomenal dissemination of knowledge about supply chain management and higher degree of recognition by many organizations, for majority of SME’s, the supply chain is perceived and limited to the buying function only. The companies achieving profitability and growth objectives are those who recognize supply chain as a value-added process that is involved and integrated in all activities from concept to physical delivery of a product or service to customers.
Companies usually approach to tackle supply chain issues by picking a smaller, easier problem and look for incremental benefits, or at times stay within the constraints. It is particularly true for SME’s. Most of these companies are unable to unleash the full potential of value addition by supply chain. In contrast, what is required is, a collaborative and integrated supply chain approach tackling end-to-end supply chain issues to achieve company’s ultimate strategic business objectives, such as, ideal product portfolio, collaborative supplier base, a perfect human capital and production model, optimized price structure, optimum customer delivery routes, etc. Supply chain is fully capable and geared up to deliver these, and much more.
By: Jafar Hyder