by Mark DiMaio
Last Friday, I had the pleasure of attending the Delaware Manufacturing Extension Partnership (DEMEP) program on Supply Chain Optimization Leadership. It’s a national program developed by the Manufacturing Extension Partnership network. The program focused on understanding the advantages of incorporating a strategic approach to supply chain management, and how it can provide a positive impact on local economies. Today’s manufacturers need to be more agile, flexible, and responsive to external pressures. Competition between companies has given way to competition between supply chains. The DEMEP Supply Chain Optimization program provided a road map for companies to focus on improved collaboration and supply chain integration. I learned that the enemies of supply chain effectiveness are: the destabilizing effects of dependency; forecast inaccuracy; variation; and lack of supply chain visibility.
The program provided a working session to better understand supply chain fundamentals and the strategic implications of a poorly functioning supply chain, as well as gained insight to supply chain system dynamics. The main take away was that a lack of understanding and communication within your supply chain will drive higher inventory levels and lower levels of service. Developing a sound supply chain risk management strategy that includes strong partner collaboration will drive supply chain optimization. Rustyn Stoops, Executive Director for DEMEP, put it best, “Eliminating the four walls of your business and looking at your business as the entire Supply Chain, while improving communication and collaboration along that same Supply Chain, has the opportunity to yield some incredible results.”