Supply Chain Collaboration

1. Collaboration with suppliers and contract manufacturing partners leads to a

competitive advantage over other supply chains.
2. Supply chain collaboration leads to better sales and demand fulfilment.
3. Collaboration with customer help in management of unanticipated or highly volatile
demand.
4. Collaborative planning initiative such as vendor managed inventory improves supply
chain performance.
Information Sharing

1. Information sharing with SC partners such as customer, distributors, contract

manufacturing partners and suppliers makes the supply chain more responsive.
2. Information sharing with SC partners reduces the risk and brings supply chain
stability.
3. Sharing of information about actual demand in the supply chain helps to take correct
inventory and production decisions.
4. Information sharing in Replenishment system improves supply chain visibility
5. Feedback to supplier on quality and delivery performance improves supply chain
performance
Incentive Alignment

1. Sharing rewards and risks with SC partners induce cooperative and productive
behaviour.
2. Aligning incentives, risk, cost and rewards of doing business with partners increases
their long term commitment.
3. Supply Chain works well when incentives of the partner companies are aligned with
respect to risks, costs, and rewards.

Consultation and Cooperation

1. Exchange of views with supply chain partners on new product development and
market promotions helps in better market performance.
2. Supply Chain collaboration focus on cooperation and joint efforts.
3. Supply chain partners with trust and long-term relationship do not act
opportunistically
Supply Chain Analytics

1. Exception reporting systems and predictive tools help to helps to improve risk
performance
2. Analytic transforms supply Chain data into information which helps to remain
competitive.
3. The organisations look forward to supply chain analytics to reduce cost and improve
customer service
4. Supply chain analytics can derive better operational efficiency.
Manufacturing & Logistics Flexibility

1. Manufacturing flexibility in the form of reduced set-up times enables a greater

responsiveness to changes in product mix or volume.
2. Manufacturing flexibility provides more responsive system as against inventory build
up to meet customer demand.
3. Capacity flexibility and versatility in manufacturing has strategic implication in supply
chain
Mass customisation & Postponement

1. We reduce demand side risks through late product differentiation.

2. Production postponement helps in finished goods stock reduction.
3. Production postponement reduces order uncertainty.
4. Point of product differentiation close to customer order helps to manage inventory
and cycle time more efficiently.

Visibility

1. Improved supply chain visibility among supply chain members helps to improve
supply chain performance.
2. Supply chain visibility enhances the capability of the supply chain partners to co-
ordinate their operations in an efficient manner.
3. Increased visibility in the supply chain helps to manage supply chain uncertainty.
4. The visibility of end consumer demand reduce excess inventories caused by demand
amplification.
Sourcing Decisions and criteria

1. Organisations can manage price increases by suppliers through long-term contracts

and more suppliers in the panel.
2. Organisations balance a small number of suppliers for greater efficiency and more
suppliers to take care of supply risks.
3. Using multiple suppliers can be an effective tool in dealing with unexpected supply
breakdowns.
4. Dual sourcing provides flexibility and reliability.
Supplier Development

1. Supplier development can lead to integrated supply chain

2. Supplier development improve a suppliers performance and capabilities to meet
supply needs
3. Organisations ability to compete in the market is closely linked with supplier
development
SC Design Principle

1. Performance elements such as speed, reliability, cost and convenience are important
supply chain design considerations.
2. Ability to quickly redesign the supply chain reflects well on supply chain resilience.
3. Innovative product needs a responsive supply chain, a functional product an efficient
one.
4. Customers demand supply chains design bring visibility close to end consumer.

Efficiency vs. Redundancy Lean

1. Restructuring manufacturing processes and layout results in process focus and

streamlining plant operation
2. Implementation of pull based production system leads to reducing batches setup
time.
3. Quality improvement programs for quality improvement such as TQM , 6sigma
projects, quality circles etc. reduces uncertainty
4. Programs for the improvement of equipment productivity reduces production
uncertainty
Inventory Profile

1. Use of safety stock helps in managing supply chain uncertainty.

2. The centralisation of inventory reduces stock by aggregation advantage.
3. Mismatched supply chain inventory can lead to high Inventory costs due to
obsolescence, discounted sale and stock-outs.

Mapping & critical path analysis

1. Identifying network-risks requires a thorough understanding of the supply networks

structure, flows and complexities
2. We identify the critical nodes and links through which material flows across the
network to identify costs and lead time and sourcing alternatives.

Risk Register

1. Risk register analyses risks and drives action to reduce the likelihood of the risk
occurring.
2. Risk Register helps to Increase the visibility of the risk
3. Risk register enables the prioritization of actions to reduce risks to an acceptable
level
Human Capability SC Understanding

1. Supply chain competencies help orders fulfilment, deliver high quality services and
manage system inventory.
2. Supply chain competencies have direct bearing over organisations performance in
terms of profit margin, product quality and return on investment.
3. Education and training of employees in Supply chain helps to improve supply chain
performance.
4. Employee training in supply chain understanding is an investment, not an expense.
Risk Management

1. Understanding supply chain threats and exploring causes can potentially make supply
chain more stable.
2. Audit reporting of near-miss cases and other disruption risks help to improve supply
chain performance
3. Systematic evaluation of supply chain risks, integration with risk severity, probability
and cost can be helpful in risk resolution.
4. Ability to perform post disruption analysis helps to improve risk performance
5. On-going process of improvement in risk assessment and management will lower the
supply chain risk.
Supply chain continuity team

1. Coping and recovery skill is useful for maintaining supply chain continuity.
2. Cross-functional supply chain risk management teams helps in better risk
management.
3. Predefined self-executing contingency plans help in business continuity.
4. Understanding of cost benefit trade-offs helps in managing risk in a supply chain.

Senior Management Commitment

1. Investment in Risk Management activities is reflection of senior management

commitment.
2. Management intent and commitment improves supply chain risk performance.
3. Iterations for continuous improvement in risk management reflects management
commitment.
4. Dedicated team for risk management reflects management commitment to risk
management.