Interested in transforming your supply chain to ONE supply chain ?

Since 2023 a recurrent topic we hear from healthcare companies is transformation as goal for 2024.

Both terms could mean the same.

Transformation refers to reinventing the framework with a fundamental change in the organization performance to support either a recession or a growth and to become more competitive, minimize risks and improve operational resilience.

A combination of process, people, and tool changes to deliver business benefits and improve financial results are then potentially needed.

A first assessment will allow to determine on which quadrant the company fits in, as depending on the company organization maturity the recipe and transformation stages could be significantly different.

Industry 4.0 technologies, digital transformations, Advanced Planning Systems (APS), sustainability programs to enhance speed to market, customer centricity and satisfaction are independent technologies part of the transformation.

Before jumping in any of those technologies, a more holistic approach is required to ensure cohesion across the program and over the time to deliver constant results.

In Supply Chain, end-to-end approach, different organization to eliminate silos and all supported by a data governance program will be a key for success.

Now the interesting question is why should you think about transforming your Supply Chain ?

Look at the below statements.

If you wonder about at least 1 statement in each section or more than 10 in total, you may need to consider the benefits of a transformation.

Processes:

• Is it taking too long to be operationally ready to launch a new product ?
• Are the recent launches generally suffering from backorders ?
• Do we have static safety stocks across the product lifecycle not maximizing working capital vs. uncertainty ?
• Do we have products in the right stock holding points and an efficient control tower ?
• Do we need simplicity in the processes, homogenization across the team to build efficiency ?
• Do we have an efficient S&OP/IBP process ?
• Do we have interconnected and centrally management procurement teams ?
• Do we SCM/Procurement involved in R&D design to ensure scalability and sourcing for commercial phase ?

Organization:

• Do we have SCM teams dispersed and or following different processes product or geography based ?
• Do we operate with too many silos, is information and communication fly correctly from a department to another ?
• Can we be more efficient and do more with the same headcounts ?
• Do we need to improve supplier / manufacturing schedule adherence ?
• Do we have a seamless collaboration/communication with our suppliers ?

Executive-Level:

• Do we need scenarios to be ran faster, with clear risk and opportunities highlights to take sound decisions ?
• Can we quickly spot the cost drivers of the operations and task improvement projects ?
• Do we need more SCM in the company strategic discussion ?
• Do you think your Supply Chain resilient enough ?
• Do you envisage a Glocalisation (more local and flexible) ?
•  Do we have the right Executive S&OP governance ?

Tools:

• Do we have visibility of each major supply chain steps to quickly identify where focus is needed ?
• Do we need to associate flows to financials to get a clear picture of the value chain ?
• Do my different data stream connect to each other ?

Network design:

• Customer evolves, do we need to create new channel and rethink the distribution model ?
• Do I have the appropriate distribution network as my channels evolve (or different T° temperature-controlled chain) ?
• Do I have the right channel to market strategy ?
• Do I need to leverage a more efficient tax footprint ?

Customer centricity :

• Is my service level ... what it is already ?
• What should be rational service level to my customers, how can I improve it ?
• Should we check with our customers how they handle our products and listen to their expectations ?
• How can I help my customers to ensure the best customer experience from ordering to receive our products ?

Sustainability:

• Do we truly know what is sustainability and what is expected? 
• Do we know our impacts as a company?
• Have we defined objectives for ourselves and our network of partners?