Every company should be working towards improving their supply chain. It does not matter how big or small your company is, the supply chain is one of the most important components of your revenue generation.
1. Top 5 Supply Chain Leaders: What Your
Competition is Doing Better
by: David Kiger
2. Every company should be working towards improving their supply chain. It does not matter how big or
small your company is, the supply chain is one of the most important components of your revenue
generation. This is where you should be investing your time and money. David Kiger often recommends
that companies spend time analyzing and improving their supply chain logistics and management
processes. While there is no reason not to do so, many companies fail to look at others including their
competition. Why not? If these companies are doing something that is working for them, your company
should consider implementing it.
Who are the leading companies in supply chain management? Generally speaking, these are some of the
largest companies in the industry. However, it's important to keep in mind that many of the practices and
methods these individuals use are ones you can apply to your company's supply chain as well, no matter
what the size of your company is. Here are the companies David Kiger considers the leaders in this
industry and why. How can you take steps to improve your company's successes by focusing on these
leaders' successful methods?
3. Number 1: Apple
There is no other company that can move product as quickly as Apple can. What that means is simple.
Apple is able to manufacture their products after sourcing raw materials from around the world. They
then ship directly from manufacturer to customer or to various distribution companies to retailers. They
are diverse and because their worldwide-sought products are so in demand, they have to be lean and
efficient. So, what do they do to accomplish this?
Their primary focus is always on customer experience rather than the lowest cost method.
The company is always innovating. This is essential to the most modern supply chains. They use
comprehensive data and logistics to innovate into an efficient machine.
They've created an end-to-end network. This is done through careful logistics planning.
4. Number 2: Amazon
Think about all that Amazon does and it is easy to see why it ranks up there in the most effectively
managed company from a supply chain side. The company has grown significantly in terms of
domination in e-commerce. It doesn't have just one warehouse, but smaller distribution centers located
throughout the world. And, the company moves a large and ever growing amount of packages quickly
while still offering customers nearly free shipping. What makes Amazon's supply chain work so well?
The company is highly innovative in terms of its supply chain management solutions. It uses
comprehensive data.
The company has moved to as much automation within its supply chain as possible, reducing risk and
improving overall value.
It has a robust demand management system in place especially ensuring it can deliver products with an
uncertain profit margin.
5. Number 3: McDonald’s
When you think of supply chain management you may not think of McDonald's. However, the company
has created a very strong presence for itself in this industry and with good reason. It is capable of serving
the same product to customers around the world using the same products and it keeps prices as low as
possible to remain competitive. What makes it a standout?
The company employs a wide range of technology and data solutions not only to integrate its raw
products but also its numerous finished goods.
The company has invested heavily in innovative technology that streamlines much of the company's
ordering and material processing.
It's warehousing and logistics is complex, counting on locally available products whenever available to
lower overall costs.
6. What other companies make the list of successful supply chain leaders? David Kiger recommends Dell for
its ability to customize to fit customer needs and still deliver from raw material to manufacturer and
directly to customer and P&G, with its ability to optimize decisions within its supply chain using complete
data. Coca-Cola is a high ranker with its innovative supply chain and ability to meet on-demand needs.
Intel, Cisco Systems, and Wal-Mart stores are also highly efficient supply chain leaders.
When it comes to managing your supply chain, there are many factors to take into consideration
including efficiency improvements from innovation and data. As a company of any size, it's essential to
have a supply chain management system in place that is highly responsive and reliable. You also need a
system that can grow with your company, manage disruption easily and quickly, and keep up with your
ever-changing demands. All of these components come together when you work with a supply chain
designed to meet your unique needs.
7. As a company, it pays to take a
closer look at your supply chain
on a regular basis. You also
should take a closer look at the
competition and how they are
making it work.