Saturday, April 08, 2006

My advice to you for reinventing your supply chain...

Based on what I have seen in different companies, usually, you can translate what your target cutomers want into measurable obejectives in these 5 factors:

1) cost
2) speed
3) flexibility
4) quality
5) dependability

The key point here is which one is the most important to create value both for customers and the company (well, that's what the management is all about). Then the next step is to form the whole supply chain around this factor to fulfill customer demands. If the company succeeds in doing this, the results will be highly rewarding.A good example is my favorite company in fashion industry: ZARA

Zara's focus from the start has been on speed: production planning, new product development, transportation and all the other things have been designed in a way to achieve this goal. By focusing on speed, the company has found its way to become the most profitable fashion company in the world.What is the most important factor in your industry?



Anonymous Senthil Nathan said...

So would New product development and innovation come under one of these five factors ?

10:53 PM  

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