guike can take an important step towards supply chain excellence by creating appropriate product segments

In order to help companies determine how to achieve excellence in their supply chain, we have designed a framework containing 20 elements, which is divided into five levels: strategy, network, organization, process and digital support. The elements of this framework are developed based on our experience in many supply chain projects in the chemical industry, covering all aspects of the world-class supply chain.

The elements that need special attention will vary according to the business environment, supply chain maturity and the company’s goals. Therefore, companies should consider the entire 20 element framework, rather than simply targeting the most obvious or easily accessible opportunities.

Some of the most critical actions that may be required are described below.

Strategy. At the strategic level, guike can take an important step towards supply chain excellence by creating appropriate product segments and then outlining market segment specific goals, policies and processes. We suggest going beyond the standard segmentation by commodity or specialty to distinguish by quantity, profit and life cycle stage. For example, companies can distinguish between stable high-volume products and sporadic low-volume products. Segmentation is particularly helpful for managing a large and diverse product portfolio, because it allows guike to emphasize the most critical products and avoid investing disproportionate resources in other products.

Network. In many chemical enterprises, warehousing network, transportation process and logistics outsourcing have developed for a long time Guike reviews today’s logistics market and service providers. For example, many companies have local warehouses in most of their manufacturing plants, and even small orders are delivered directly to customers. However, guike, which integrates warehouses, introduces regional centers and develops a clear outsourcing strategy, can create considerable value by reducing logistics costs and delivery lead times and improving product availability.

Organization. Two aspects of the organizational level are particularly important. One is related to the roles, responsibilities and interfaces in the end-to-end supply chain. Guike is striving to improve its key functions such as logistics, manufacturing, procurement, sales and marketing However, in many cases, the interface between these functions is vague, which may lead to unnecessary conflicts. Even within functional departments, we find that companies sometimes misplace local, regional and global responsibilities. In order to solve such problems, guike clearly defines the role and contribution of the basic process, and assigns clear responsibilities to goals and indicators. This will lay a solid foundation for proper adjustment of responsibilities and support the smooth operation of the end-to-end supply chain.For companies seeking significant performance improvement, it is necessary to fundamentally redesign the supply chain structure and processes.

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