FORMULATING STRATEGY

SET TOP STRATEGIC GOALS :

GROW YOUR BUSINESS

How to grow and increase revenues while maintaining the level of service to your customers?

Become growth generator

INCREASE PROFITABILTY

How to reduce costs and increase business productivity and efficiency?

Become profitability wizz

IMPROVE CASH-FLOW

How to enhance cash flow and the flow of goods and information through supply chain management?

Become cash-flow master

Do you want to better understand the supply chain and what the future holds for you?

As a supply chain consultant, my goal is to help clients improve their efficiency, flexibility, and market competitiveness. To achieve this, LOGIKO offer new and innovative services that will enable them to better understand and manage their supply chain.

One of the LOGIKO services you can use to glimpse possible futures and better manage uncertainty is Peripheral Signal Detection in the supply chain. Peripheral signals are weak or ambiguous signals indicating potential changes in the supply chain environment, such as new trends, needs, technologies, competitors, or threats. Peripheral signals can help you detect early signs of potential disruptions or opportunities in the supply chain and respond more quickly and effectively.

Another possible service you can use is Scenario Planning for your supply chain. Scenarios are alternative futures that can impact the supply chain, such as changes in demand, technology, legislation, competition, risks, and opportunities. Scenarios can help you identify key factors affecting the supply chain, assess their impact, and develop strategies to adapt or capitalize on different outcomes.

A third possible service you can devise is Supply Chain Modeling and Mapping. Modeling and mapping are techniques that allow you to visualize and analyze the structure, flows, processes, costs, performance, and risks of the supply chain. Modeling and mapping can help you identify weaknesses, inefficiencies, losses, bottlenecks, disruptions, and improvement opportunities in the supply chain and propose solutions for optimization and transformation.

How to formulate supply chain strategies that will help you achieve these goals?

Defining a supply chain strategy from a detailed, functional analysis of future expectations and current constraints is not only overly complex and time-consuming but also carries the risk of losing sight of the overall strategic ambition of the supply chain. As a result, supply chain leaders often face the challenge of translating visions and goals into understandable, easily communicated priorities.

Therefore, LOGIKO suggests using a disciplined framework to collaborate with key stakeholders in the supply chain on strategy, priorities, and interdependencies. The Supply Chain Matrix is a framework that assists in developing an end-to-end (E2E) supply chain strategy. Key elements of the supply chain strategy include:

• Current state of the supply chain
• Future possibilities
• Deviations between the current and future state
• Priority activities and initiatives

LET’S MAP THE SUPPLY CHAIN STRATEGY TOGETHER!

1. SCOPE

The initial phase of defining the scope of the strategy requires a top-down approach to understand the internal and external environment of the supply chain, both now and in the future. The key focus is to gain a comprehensive overview of the supply chain capabilities from start to finish, rather than delving into specific details.

The Supply Chain Matrix is an empty canvas that organizations can use to map the current capabilities of their supply chain and plan for their future desired state.

2. PLANNING

A supply chain strategy must include the consideration and development of a range of capabilities and resources, including organization, processes, skills, data, and technology.

3. EXECUTION

Executing the strategy requires gaining consensus among functional leaders within the supply chain and ensuring the support of key stakeholders, including management and top executives. The matrix helps determine how all parts of the supply chain are interconnected and communicate with each other.

The Supply Chain Matrix is a journey that begins with forming a team from different areas of the supply chain and operations that designs the Matrix of the supply chain strategy.

How to Teach a Frog to Think Strategically?

The story goes like this: "Three frogs were sitting on a white lily in a pond. They sat all day and around evening one of the frogs decided to jump into the water. The award question is: How many frogs were left on the white lily?" Although I get different answers, from – none, to – all three of them, maybe the right answer will look like – two frogs. But the correct answer is three! One of the frogs decided to jump but it didn’t jump. This can be a problem with strategies - they may be made, but they are not implemented. Long ago, wise men said that we need to move from words to deeds. Of course, it is much easier to theorize in the comfort of your office than to prepare to work and start a "hard physical work" of implementation somewhere in one of the operative departments.
The lesson is as follows: Many organizations have a formulated and accepted strategy, but in the course of implementation, gaps emerge that distance us from the perfect execution of the outlined strategy:
- Knowledge Gap: the difference between what we would like to know and what we actually know.
- Alignment Gap: the difference between what we want people to do and what they actually do. Similarly, we desire alignment across all departments in the company (procurement, sales, production, etc.).
- Performance Gap: the difference between what we expect our actions to achieve and what they actually accomplish.