Almost twenty years ago, Marshall Fisher introduced the concept of supply chain segmentation to the Harvard Business Review. Since then, supply chain management strategies have flooded the marketplace. Even with decades of advancement in supply chain theory, however, traditional approaches to supply chain strategy have failed to achieve consistent success. These approaches fall short by not effectively integrating operational and commercial strategies, causing continued service failure, cost increases, wasted time, and a misuse of resources by hiring consultants who are narrowly focused and miss the full perspective of the problem.
“Too many companies get mired in tactical details or create operational fixes that will never be executed,” explains David Beaird, owner and CEO of Beaird Solutions. “Their service suffers, costs explode, and the business is put in harm’s way.”
According to a survey by the Business Continuity Institute and backed by Zurich Financial Services, 85 percent of companies experienced at least one supply chain disruption in the previous 12 months. The vast majority of supply chain management strategies do not give enough credence to the complex and multivariable connections among the key drivers across the entire value chain. They also fail to recognize and align each industry’s competitive framework and discount the rippling effects of a supply chain failure.
As errors in supply chain management can be extremely costly, the Procurement Bulletin outlined the three levels of supply chain management to give an overview of the process. The first level is strategic planning. Successful operations require a carefully considered plan that takes into account the numerous supply chain variables and how they affect each other. Among the items the plan should include is the creation of a reliable network of suppliers and transport, full life cycle product management, and IT system implementation. The second level is tactical management, which means putting in place procurement contracts, production schedules, and inventory logistics. Finally, the third level is operational. This includes the daily workings of the supply chain, where it is key to continuously monitor operations, project future needs, and settle losses or damages. Effective supply chain strategies take a holistic approach that gives adequate attention to all three levels of supply chain management.
Today’s business environment requires a customized supply chain solution that takes into account the major themes and detailed nuances of a business to avoid the costly pitfalls of poor supply chain management and deliver results.
“We strive to understand your commercial and sales strategy first, then we tailor your supply chain and operational strategy to support your commercial strategy,” says Beaird. “We drive achievable, action-focused, beneficial change that will take place in the real world versus a fantasy consulting world. Simply put, we solve problems and get stuff done.”
Beaird Solutions designs and implements tailored solutions using top operations technology and custom strategies at an industry-disrupting price. Learn more about David Beaird’s expertise and how Beaird Solutions can streamline your supply chain at BeairdSolutions.com.