Supply Chain Drivers

Customer Service
• Customer Expectations: Understand and meet
customer requirements and expectations. This
includes factors like lead times, product
availability, and order accuracy.
• Order Fulfillment: Develop strategies to
ensure on-time and complete order delivery.
• Communication: Establish effective
communication channels with customers to
gather feedback and resolve issues.
 Inventory Management:

• Inventory Levels: Determine optimal

inventory levels to balance supply and
demand.
• Inventory Turnover: Aim to minimize carrying
costs while ensuring product availability.
• Forecasting: Implement robust demand
forecasting methods to avoid overstocking or
stockouts.
 Supplier Relationships:

• Supplier Selection: Choose suppliers based on

quality, cost, reliability, and alignment with
your business goals.
• Supplier Collaboration: Collaborate with
suppliers for mutual benefit, such as sharing
information, cost reduction, and continuous
improvement.
 Transportation and Logistics:

• Transportation Mode: Select the most suitable

transportation methods (e.g., truck, rail, sea, air)
based on factors like cost, speed, and product
characteristics.
• Routing and Scheduling: Optimize routes and
schedules to reduce transportation costs and
delivery times.
• Packaging: Choose appropriate packaging to
protect goods during transit and minimize
damage.
 Information Technology:

• Supply Chain Software: Invest in technology

for efficient supply chain management,
including Enterprise Resource Planning (ERP)
and Supply Chain Management (SCM)
systems.
• Data Analytics: Utilize data analytics for real-
time monitoring, demand forecasting, and
performance measurement.
• Quality Management:
– Quality Standards: Establish and maintain quality
standards for products and processes.
– Quality Assurance: Implement quality control
processes and audits to ensure compliance.
• Cost Management:
– Cost Reduction Strategies: Continuously work on
cost reduction initiatives, such as lean practices
and efficient procurement.
– Total Cost of Ownership (TCO): Consider the TCO
of products and services, including transportation,
inventory, and carrying costs.
• Risk Management:
– Risk Assessment: Identify potential risks and develop
mitigation plans for supply chain disruptions.
– Resilience Planning: Prepare for unexpected events,
such as natural disasters, economic downturns, or
geopolitical issues.
• Regulatory Compliance:
– Legal and Regulatory Requirements: Stay updated on
relevant laws and regulations, particularly in
international supply chains.
– Environmental and Sustainability Compliance:
Adhere to environmental standards and sustainable
practices.
• Sustainability and Ethics:
– Environmental Sustainability: Consider the
environmental impact of supply chain operations
and strive for sustainability.
– Ethical Sourcing: Ensure that suppliers adhere to
ethical labor and business practices.
• Globalization:
– Global Expansion: If operating globally, adapt the
supply chain to accommodate different markets,
cultures, and legal systems.
– Currency Exchange: Manage currency risks when
dealing with international suppliers and
customers.
• Performance Metrics:
– Key Performance Indicators (KPIs): Define and
measure KPIs to assess the performance and
effectiveness of the supply chain.
– Continuous Improvement: Use metrics to drive
continuous improvement in supply chain
operations.