Infosys: DNA Therapy for Strategic Cost Reduction in Supply Chains
Wednesday, 3 November, 2010 Leave a comment
I stumbled upon this article and thought it worth commenting.
The Author is certainly thinking along the right lines BUT (to continue the analogy) is lacking a means of determining what is a safe target weight. Too lean can mean too fragile! “Supply Chains” are, more accurately [and increasingly], Global Supply Networks. A trend that is set to continue with, I suspect, the most successful being Global Value Networks.
Fragility moreso than “obesity” is a threat to Supply Chain (SC) robustness.
“Redundancy” must be built-in “where it is needed” i.e.where there is weakness in the chain, but, particularly because, of the tough trading conditions, it is vital to quantify where the weaknesses are.
To do so requires the means to map and measure the effectiveness of the entire Supply Chain. That is where the problems begin…unless you ask me: “HOW?”
Just the kind of question that I and my colleagues at Ontonix, are SO VERY KEEN TO HELP ANSWER.
…is there a one view holistic approach which gets to the fundamental building blocks of the organization’s supply chain and works of those elements to shed the extra fats “at source”. Can organization supply chains have a DNA which is very characteristic to the individual company’s personality and the industry which determine how the supply chain operates? We are looking for a “Strategic Cost Reduction” approach to supply chain to treat the root cause of supply chain obesity. I have come across various models of cost reduction and personally feel a one axis view would always by tactical and for a strategic approach one needs to look at a multitude of factors