SCM involves a variety of important fields of competence. The performance capability of the planning- and logistics processes has direct impacts on corporate success. Here are some of the elements that should also be included in your strategic plan for SCM and logistics:
professional sales planning as a foundation for production and logistics
organization, responsibility and the process of planning in the enterprise
development of a cross-functional and inter-divisional forecasting process SOP
improve delivery capability and customer satisfaction as well as avoiding overstock
storage concept with centralized and/or regional storage structures
improve efficiency, save costs, increase profitability
product portfolio, supply & demand, continuous streamlining of the range of goods
Frequently forecast errors are blamed for failures. However, most of the time the error originates from poor communication and coordination of management, sales, SCM, purchasing department and manufacturing.
