What should a 'bigger picture' strategy look like for supply chain management?

The concept of globalisation applies perfectly to supply chain management, or SCM for short. Raw materials come from all over the globe, and are processed and turned into parts in equally diverse geographies.

As a result, supply chain management must in most cases be a ‘big picture’ endeavour. Particularly in the modern world, with all of its geopolitical and economic complications, thinking big is a core part of making sure things run smoothly.

A complex ecosystem

Fundamental to a ‘bigger picture’ strategy is an appreciation for the complexity of supply chain management. There are so many moving parts, and you need to try to get a grasp of what that ecosystem looks like in your niche. 

Factors that could impact your day-to-day operations could include everything from interest rate changes in central banks to changes in environmental policy.

Thinking big means recognising that while many of these things are outside of your control, they can have a big impact on your business and you can choose how prepared you are to respond should such an event occur.

Contingency plans

Contingency plans in supply chain management essentially mean doing everything you can to avoid bottlenecks. This could mean having a parts supplier on hand such as EPD Parts, or simply keeping an eye on potentially complicating international trade deals.

Other more general contingency plans can be long-term, such as using a diverse range of different suppliers. The higher the risk that one of these suppliers might not be able to deliver at some point in the future, the more important it is to diversify.

A forward eye on innovation

Pretty much everything you can think of in supply chain management has changed over the past 100 years, and there’s no reason to think that the solutions we have today won’t also be replaced.

To stay up to date, you need to keep an eye on innovation in diverse areas at all times. While adopting just one or two new solutions might not be a game-changer on their own, as these innovations accumulate, efficiency and optimisation more generally can start to change dramatically.

Sustainability

Finally, bigger picture strategies need to take a broad view when it comes to sustainability.

More than just a catchword that brings to mind activists and Green Peace campaigns, sustainability is the concept that defines how your system can thrive in a rapidly changing world.

An effective approach to sustainability will likely need to cover not only environmental harm mitigation, but also smart social practices and forward-thinking approaches to system change.

There’s clearly a lot that needs to go into developing a ‘bigger picture’ strategy when it comes to supply chain management. As a concept and practice with so many dimensions and moving parts, thinking about it in an insular manner will never be a good idea in the long run.

By thinking about the topics listed above in a wider way, you can start to develop an approach that can cater to a rapidly changing world in a successful and proactive manner.