Supply chain management is often taken for granted in the business world. Regardless of industry, the supply chain is the backbone of any company. It begins with procuring the materials or services needed to create the end product and continues until the finished goods are in the customer’s hands. This process typically involves a range of decisions and transactions between several distinct entities and a good supply chain is one which is responsive, agile, and lean and offers complete visibility.
One of the biggest challenges facing organizations today is operational silos that prevent companies from acting with the speed and agility necessary in today’s volatile, consumer-driven marketplace. This is critical because those who cannot keep up with fast-changing customer demand will lose customers and market share.If prevalent within an organisation, this silo mentality can create significant inefficiencies through poor communication, data duplication, process bottlenecks and functional prioritisation that does not reflect the corporate strategy.
Silos are a stumbling block to supply chain transformation. Supply Chain professionals understand the pace at which business information changes and the impact on the business. Yet, complex information silos still exist in many organizations which affect Supply Chain Performance and ultimately customer service.
The most challenging aspect of this whole supply chain process is not so much building the external linkages to the partners, but rather breaking down the functional silos and walls within the organization. Companies today need internal integration before pursuing SCM strategies and cross-chain alignment initiatives.
Supply chains are driving fundamental and transformational changes in today's organizations. More than that, supply chains challenge the core processes, the prevailing organization paradigm, requiring significantly more focus on customers, horizontal relationships, integrative thinking, and dynamic and continuous adaptation. These values are difficult to consistently reinforce and support in siloed structures. It needs strategic planning, Tactical management and effective operational level processes The most effective supply chain strategies are the result of a holistic management approach. When all 3 levels of supply chain management are given proper attention, every member of the supply chain benefits.
At Athena SCL, we understand the challenges faced by companies and help them in breaking down the functional silos between the Supply Chain Functions to leverage their supply chain to their fullest potential to realise their business objectives.
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