Strategies on Synchronizing Supply & Demand
The basics of success in business remain as simple as you must supply a product or services that people need because it solves a problem for them and you must get it in front of them when they need it at a price they can afford. That encapsulates the basic premise of business economics in a quick, efficient summary.
What is supply chain synchronization?
Supply and demand must work in concert. You lose money if supply outpaces demand or if you cannot meet demand. Enter supply chain synchronization to save the day. This concept connects data partners in digitized collaborative collection, analysis and utilization for real-time business information that enables improved problem recognition, process improvement and risk mitigation.
The Importance of Supply Chain Synchronization
Businesses consistently search for a sustainable edge. Each firm wants something that lets them increase conversions through their sales funnel. Supply chain synchronization assists over the long-term by continually funneling the latest data for up-to-the-minute decision-making. This supply chain synchronization and application of its analysis results in four main positives:
- Lower operations costs,
- More opportunities for revenue,
- Added flexibility and efficiency
- Supply chain-wide transparency.
Business reports from this data help determine the key business driver. Its continued application allows for constant rebalancing that keeps the company on the cusp of customer needs and vendor issues. By creating a digitized ecosystem from raw materials to retail delivery, the synchronization enables constant improvements such as you would make on a manufacturing line using kaizen methodology but within the entire end-to-end-to-end supply chain. Since it leverages consumer feedback and opinion and integrates that into the business processes, including product improvements and new products, the synchronization methodology contributes to the business holistically rather than piecemeal to only the supply chain or the consumer demand.
Implementation for Results-Driven Success
Once you learn the what and the why for supply chain synchronization, you want to know the how. Every business, regardless of size, can implement this information gathering and management process that can drive productivity, improvements and provide a sustainable competitive edge.
If your business has undergone a recent upheaval, synchronization can help enable stabilization, followed by the discovery of the steps needed for recovery. This could require a rebalancing of the supply chain fueled by total value optimization (TVO). You need to follow five steps to implement synchronization.
- Identify the main drivers of the business. Each product, division and set of compliance requirements qualifies.
- Align the three Ps – physical assets, processes, and people. Sync budgets, strategy and innovation.
- Synchronize each physical supply chain so you can map your value stream to eliminate variation, recognize bottlenecks and reduce waste.
- Synchronize your business processes using flow charts and assigning a process or system owner to each.
- Synchronize the business’ people systems. This can contribute to improving company culture.
The effective execution of the steps above could call for the inclusion of advanced technology applications such as artificial intelligence, machine learning, robotic data gathering and potentially drones. Likewise, the successful use of data may require the layering-in of sophisticated business intelligence know-how that ranges from data sourcing, data storage (via data lakes) to predictive analytics that allow problem recognition before they become reality.
While proper implementation requires expertise, Starr & Associates can help you achieve that. Using synchronization methods can spillover from supply chain improvements to better customer service and stakeholder collaboration while reducing complexities.
Contact Starr & Associates today to jumpstart your supply chain synchronization efforts. Let our business strategy experts help you revolutionize your company and leverage data in a manner that eliminates silos while creating better actionable business information.