Optimizing the supply chain is crucial for maximizing productivity and must be

executed with precision.

(

Maximizing productivity by analyzing and executing supply chain optimization.

Supply Chain Optimization: Improving Efficiency through Analysis and Implementation.

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Optimisation in the supply chain aims to improve the performance and efficiency of a supply
chain network by using technology resources and streamlining critical processes to achieve a
successful customer experience.
IBM envision the optimisation process to involve three critical phases: first is the design of
the supply chain. In this phase, strategic objectives are defined, such as product flows,
planning and scheduling manufacturing or service operations. Here, The importance of
demand forecasting cannot be overstated. It is a critical and crucial aspect of business
operations that directly impacts the success and profitability of a company. Accurate
forecasting allows for better decision-making, efficient resource allocation, and improved
customer satisfaction. As such, it is imperative for businesses to prioritize and invest in
effective demand forecasting strategies.
Your business must be able to predict how customers will respond to their service or products
and make prior adjustments. You see, customers’ appetite is changing every day; indicating
what one’s customers want is no small feat. This ranges from quality, quantity and timelines.
Look at COVID-19 at the initial period; For instance, there was an overnight surge in demand
for alcohol-based sanitizers. Every business supplying the product was out of stock in under a
week. While some natural causes may be unpredictable, Accurate demand forecasting is
essential for any business to Succeed in the real world. In his book The Tipping Point,
Maxwell Gladwell asserts that change happens sometimes, not gradually but at one dramatic
moment. At this moment, a business can hit its tipping point and break its ceiling to massive
success.
Secondly, planning to balance supply and demand requires a strategic supply chain
deployment plan. By coordinating assets and resources effectively, you can ensure that your
customers receive the best possible experience when using our products and services. In
Planning phase; efficient communication and seamless information sharing from suppliers
hold paramount importance.
Lastly, supply chain execution. IBM emphasises this and is better achieved by smooth
execution-oriented applications or systems. This is critical in all the phases of improving
efficiency from start to finish. What will be the use of supply chain design and plan if not
well executed? At execution, inventory, warehouse and transport management come to
mingle and fulfil customers' expectations in full. It’s a make or break. At this phase, the
execution application comes in handy to ensure real-time decision support, order
management and overall supply chain visibility.
The benefits of analysis in supply chain optimisation in the current challenging economic
times can make a massive difference for any firm. It can help maintain customer satisfaction,
which has become an elusive concept in recent years. Customers are changing; analyzing
them can help a company change how to satisfy and keep their dynamic.
Moreover, Incorporating analysis into risk management processes can lead to significant
improvements. This is by helping companies predict disruptions and foreseeable events. Even
unforeseen, even with massive impact on the business, can be alleviated with an optimised
supply chain ironed over time using analysis. Of course, the obvious benefits of improved
efficiency and increased profitability cannot be mentioned.
In conclusion, optimising any supply chain can be viewed from many angles. Whichever
angle, technology and resources are available are critical to achieving a satisfactory customer
experience. Optimising your supply chain as early as possible in your business can save you a
lot of headaches, and sure enough, tough times will come; you better do it now.

Written by K.K Felix, a logistics and procurement professional and leader at a top East
African logistics firm.
References
What is supply chain optimization? | IBM
Maxwell Gladwell. The Tipping Point. (Gladwell, M. (2000). The Tipping Point: How Little
Things Can Make a Big Difference. Little, Brown and Company.)