Supply chains need to be aligned to the business strategy by geography and route to market. A company driving for operational excellence will need to have a different supply chain strategy in place than a company driving for Customer Intimacy or Product Leadership. A company driving for operational excellence will focus on costs, standardization and economies of scale whereas a company aiming at product leadership will focus on short pipelines, continuous innovation and pushing products into the market place. Defining a supply chain strategy for customer value aligned with the business strategy is key for success.

Supply chain value proposition is vital

The starting point for a supply chain strategy is the value proposition of the company, the competitive landscape and the perception of value from the customer’s perspective. Customers do have different requirements and perceptions of value. Therefore, aligning the needs and wishes of customers to the supply chain set up is key. This can result into low touch, cost efficient supply chains for ‘bronze’ customers and responsive, high service supply chains for ‘platinum’ customers that value service.

Branding of the logistics strategy

Creating alignment between supply chain strategy and business strategy is important. Internal and external branding of your logistics strategy is key as well. A documented and well-articulated logistics strategy helps to facilitate this branding process and creates internal engagement from various stakeholders on the future ambition and bridges the corporate strategy with the supply chain strategy. A clear strategy helps to avoid misfits like being too cost focused whilst the business requires a responsive supply chain facilitating flexibility, innovation and short pipelines.

Supply chain strategy & BCI advice

BCI supports clients in developing a clear supply chain strategy that is aligned with the overall business strategy. Based upon the business requirements by geography, channel and product characteristics, we develop a segmented supply chain strategy which facilitates responsiveness, agility and cost efficiency.

Although every client and project have unique features, the BCI process steps in the development of an end to end supply chain strategy including:

• Supply chain benchmarking: what can be learned from other companies inside and outside the client’s industry vertical?
• Capturing the voice of the customer, both internally and externally
• A supply chain assessment: mapping and assessing the client’s supply chain operations on a maturity grid
• Assessing the benefits of supply chain segmentation
• Prioritization of initiatives and assessing the size of the prize of each of these initiatives
• The development of a detailed roadmap for the logistics strategy for the next 3 -5 years in terms of competences, organization, processes, footprint, IT, etc.

Supply chain strategic plan

Typical benefits include a clearly documented supply chain strategy which acts as a communication tool and helps prioritize the actions to improve the end to end supply chain.

BCI can play various roles in such a process, ranging from project lead to a subject matter expert role and challenging the client’s team.

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