What is a supply chain strategy?

A supply chain strategy involves decision-making and analytical processes that define roadmaps for products, services, and market interactions, considering end-to-end supply chain required actions like sourcing goods, delivery, and logistics. There are five key capabilities an organisation must implement to develop an effective supply chain strategy: supply sense to determine supply options; supply response making sure operations are working; decision making and planning the end-to-end; monitor and understand customer needs (demand); and demand response or customer fulfilment. 

While they all deliver on adding value to the supply chain operation, there are four approaches to a supply chain strategy: client centric, predictive business, visibility, and smart automation. Each approach will provide more-less the same benefits, but with emphasis on a specific feature.

The client-centric approach is a strategy revolving around the client’s needs and requirements, with the benefit of making better informed decisions for improved overall performance thanks to analysing actual demand.

Predictive business uses high-tech tools like IoT or digital twin to manage and adjust the supply chain operation considering data from variables such as weather, traffic, etc. The benefit of this strategy is less interruption from disruptions, ensuring a smooth end-to-end process.

Visibility is similar to predictive business as it also relies on technology to provide traceability and real-time insights during the transportation process. Temperature and humidity control for cold chain cargo and GPS tracking are key features in a visibility supply chain strategy, providing the benefit of higher control and reduced exposure of cargo.

Smart automation can reduce costs and maximise warehousing operations by combining robot work and human supervision, resulting in mass product customisation, improved delivery and distribution processes, and flexibility to eliminate carrying costs. 

In the era of a growing global supply chain, planning is essential for companies to decide their direction throughout their line and order of business. Every decision-making process and coordination in the supply-chain stages are crucial to effectively deliberate results that contribute to the goal and purpose of a company. That’s why the correct supply-chain strategy can not only deliver added value to operations, but also contribute to the organisation’s sustainability goals.

At GHD we are committed to supporting clients and communities in re-building operations in supply chain and logistics towards sustainable and innovative practices. Our broad understanding and capabilities deliver an integrated approach by creating reliable networks, mitigating risks, and maximising opportunities in the global supply chain. We provide valuable insights to achieve supply-chain resilience in various sectors, including energy, water, transportation, real estate, environment, industry, and government.

With our extending global reputation, we successfully support our clients and communities to achieve supply optimisation and drive positive outcomes and growth in the future.

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