At the end of 2017, I suggested three achievable global supply chain performance improvement steps that retailers and brands might benefit from in 2018: 1) Real-time, accurate visibility; 2) Extract the full value from PLM investments; and 3) Enable sustainable growth by shoring up existing compliance processes and putting in place rules-based decision support for sourcing alternatives other than China.
Well, attention to #3 (or at least, finding a ‘Band Aid’) kept a lot of retailers and consumer manufacturers very busy. Shipments were pulled forward ahead of tariff increases, research was performed on alternative sources of supply, and costs were re-negotiated with suppliers. These steps were mostly reactive and not sustainable, although supplier costs should continuously be under the microscope. Proactive, rules-based decision support for strategic global sourcing flexibility, however, has been noticeable by its absence. Not surprising - it’s been a busy year.
So for 2019, rules-based decision support for sourcing alternatives moves from #3 up to #1 on my ‘to do’ list of performance improvement recommendations that global sourcing and supply chain leaders need to address.
At #2, last year’s expanding implementation of PLM functionality to extract more / maximum value keeps its place.
And at #3… get ready for growth. Most top retailer and consumer products manufacturer CEOs are claiming growth on their shareholder talking points. How will your global supply chain stand up to 5% growth? What about 10%? 50%? Global supply chain managers need to know the answer to that question if they are to support their CEO’s stated goals. And that’s always a sensible thing to do!
Cleaca Consulting LLC is able to help you in any of the above areas. Just give me a call on +1 973 885 2518.
Have a great 2019,
Colin Taylor