Supply Chain Redesign - A job for problem-solvers?

Not really. Engineering is only part of it. Designing a great supply chain is an art.

Supply Chain redesigns start with understanding the customer offer. And that is where the problem starts...

Who is the customer or customers we design for? How do we design a supply chain meeting the needs of these customers? Can we form an opinion talking to sales and marketing? Does that give us insights we can use in supply chain areas? How do we approach these customers?

Second we try to understand our current supply chain. But what supply chain are we talking about? Is the scope clear? Is there a supply chain we can isolate and change without impacting the rest of the business? Reality is that products form a very localized and complex offering in each market but the products do share production, distribution and storage assets. How do we segment the supply chain? Simple question. Complex answers.

Third we try to envision the best possible supply chain. But what does an excellent supply chain look like? Is it realistic to try to implement such a large scope? And should we include the information systems to the scope?

At the end of the day, the best possible supply chain is a value chain, which means the offer of products and services must be fully integrated. Both product and service values flow to chosen customer thanks to one coherent design. Just like when you go to the restaurant. You want a clear menu with transparent pricing and service that exceeds your expectations.

A value chain as designed by Apple. All is integrated into a full offer. Designed to offer the full value to the customer. Thanks to artistic design and skill full engineering.

A beautiful but engineered value chain. As opposed to a supply chain held together with nuts and bolts to adjust the way it operates each time the market forces its volatility on it.

Problem-solving is great but only after designing the right concept.