What are the key best practices in the implementation of a supply chain system?

Senior executives who create a vision for the implementation of a supply chain system will achieve success with the roll-out and implementation. Without a clear vision, the project team will struggle and are unlikely to get the required buy-in.

The lack of a project approach without clear goals and timelines is likely to fail in any organization. Many businesses think that line managers will make the time to implement the required supply chain initiatives. The pressure of daily operational activities makes this an unlikely option.

Bureaucratic processes can lead to scope creep and have a severe negative impact on the project. Senior executive can play an important role in removing barriers and red tape and insuring a smooth transition.

Overlapping IT systems or future software implementation for resource planning systems (ERP), can slow down the implementation systems. It is important for the project team to have a clear understanding of the current and future IT infrastructure, and where overlap might occur. In some organizations, a combination of computer generated information and manually recorded information can create further confusion.

Organizational culture and change management are also two aspects that will impact the organization. Creating the right culture for change needs to commence prior to project team implementation.

Senior Executive untrained in the specific capabilities and requirements of supply chain often find it difficult to make operational decisions. Training requirements should not only focus on line managers,. They should be extended to senior executives also. Executive training programs and workshops can provide an important support structure for senior executives.

Supply Chain requirements are frequently designed based on production and raw material constraints. Process mapping and design must take into consideration customer needs and economic factors. The supply chain design should not be constrained by production and supply inefficiencies.

Prior to system development and roll-out, a model design is essential. The model should include current and future supply chain requirements. Furthermore, the decision making process needs to be clearly mapped out, with a clear process flow.

The importance of best practices is sometimes underestimated. Having clear best practices, within the organization, but also within the industry, will assist in the creation of a roadmap for supply chain effectiveness.

The decision making process must clearly map out and include all key stakeholders. Often, critical line managers are excluded from the process, and are not given the opportunity to design their own process goals.

Regular feedback meetings must be scheduled with all key stakeholders. Feedback meetings often provide the opportunity for senior executives to track progress and make necessary changes, if needed.

The right people must be on board from the start of the project. Often, project teams lack critical human resources and skills as key individuals are assigned to operational tasks and unable to devote their full attention to their respective project team.

The project team will benefits from using proven implementation methodology. The lack of a clear methodology will severely affect the project roll-out.

Conclusion

Buy-in and support is probably the best way to describe the successful implementation of a supply chain system. While the long term impact and benefits of having a supply chain are undisputed, the project implementation process should not be taken too lightly. Ensuring that all key stakeholders are onboard is one of the best ways to get there.

Emerging Market partner selection and management

Southern Africa has been consuming our time of late, and I we have been missing in action. We recently conducted a supply assessment and pilot roll-out for a media company in Zambia. Our workstream focused primarily on the Go-to-Market strategy and partner selection.

The following key issues were identified during the assessment:

Select the right partners. Ensure you have a clear understanding of the partner selection criteria. Identify the key drivers of partner success and include it in your selection criteria e.g. retail expertise. Communicate the selection criteria to all stakeholders and constantly evaluate if you are on the right track. Focus on distribution partners that hold real growth potential. Poor partner selection can severely affect your Go-to-Market strategy.

There is gold in those mountains. Emerging economies provide unique opportunities outside of the capital. Regional town populations and GDPs are always understated and hold great financial rewards with often little competition. By expanding your footprint, it is also important to create the necessary support structure for your more rural partners. They are too often left to their own devices.

Take the guess work out of your business. Standard Operating Procedures (SOPs) and retail standards (for example) simplify your business procedures and help to ensure the same quality in all operations. Emerging market operations often lack critical skills and don’t make any assumptions what people can and can not do.

What gets measured gets done. Focus on the key performance drivers of your business and don’t overextend yourself. Sometimes less is more. Include key performance measurements to your business planning process and evaluate on a yearly basis whether you are using these measurements to track and improve your business. There is no point it tracking something just for the sake of tracking.

10 key challenges for supply chain customer excellence

1. Processes and systems – lack of understanding of processes and systems and the impact on the supply chain
2. Detail – poor attention to detail
3. Cost – lack of understanding of service cost and breakdown
4. Revenue – fixated on the revenue implication of each customer improvement
5. Collaboration – poor partner collaboration in the feedback process
6. Visibility – customer issues not visible to all supply chain partners in the network
7. Continuous improvement – continuous improvement are not taking place as supply chains evolve
8. What matters – poor understanding of which services or services aspects really matter to customer
9. Management involvement – limited management involvement in the customer service process
10. Tracking – poor tracking and monitoring of customer feedback

10 key attributes of establishing Key Performance Indicators (KPIs)

1. Key stakeholders- involve key stakeholders in selecting KPIs
2. Visibility– create a KPI dashboard visible to all parties
3. Adding value– ensure KPIs add value to your business and highlight opportunities for process improvement
4. Customer focus– selected KPIs should add value to your customer’s business and ultimately improve the consumer experience
5. Financial impact– always keep in mind the bottom line
6. Direction– by evaluating key KPIs, you can determine the direction your business is heading
7. Education– it is important to train your employees and services partners so that they have a clear understanding of each KPI and how it adds value to your and their businesses.
8. Focus– limit KPIs and don’t try to track too much;  you are likely to lose focus.
9. Baselines– Create clear baselines you can measure your business against and track progress
10. Eliminate– evaluate the usability of each KPI and do not be afraid to eliminate KPIs that are not adding value to your business