Implementing Supply Chain Management

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Shams Quamar
Analyst

Supply Chain Management Execution

Execution of SCM can offer remarkable value to companies that believe in the smooth planning and execution of correlated operations to realize long-term productivity and sustain a solid competive edge. SCM is a process from managing raw materials to finished goods to distribution of goods.
In other words, it is a system of conveniences and dispersion alternatives that executes the functions of obtainment of raw materials; conversion of these raw materials into semi finished and finished commodities, and then followed by dispersion of these finished commodities to buyers and consumers.

Ryelandt Jean, Belgium

A Pragmatic Approach for Implementing Supply Chain

In order to implement the most appropriate supply chain into your company, you need first to start from the main strategy of the company (first issue: how many companies do not have real and complete strategy?).
It is important to be aligned with that global strategy, otherwise you will miss your mission as a Supply Chain Manager.
From the global strategy you need to translate that into an operational strategy in order you will be able to understand what you have to focus on.
For that purpose I like Frédéric Fréry's methodology to develop the company strategy. That method called VIP drives the discussion and the development of the strategy through a cycle considering the VALUE the company will produce, the PERIMETER of the company (internal and external competencies) and the risk of IMITATION (capability of the competitor to get the same offer). I like that method because it raises the good questions within a Supply Chain perpective:

Value? ⇒ Priorities, what is your value proposal? How are you going to create value beyond costs in order to make profits? What is your business model?
Perimeter? ⇒ What internal competences need to be developed, on which market are you going to implement your value proposal? What are going to be the scope and the positioning of your company? What are you going to in-source and out-source?
Imitation? ⇒ Can your value proposal resist imitation from competitors? How do you differentiate? What is your competitive advantage?

Implementing Supply Chain Management - Strategies