select... Topics Organization People Activities Issues

Vol 32 - No 05 - July/August 2006 Editorial : Welcome to this retail edition of Control If there is one area in which the retail supply chain excels and outperforms the supply chains of other industries, it is its ability to respond quickly to changes in demand, in a highly volatile marketplace. This ability has evolved over the last 10-15 years, especially in the areas of customer / supplier collaboration, understanding demand influences and dynamics, and the development of the concept of agility. In this edition, we see articles which cover each of these areas: Collaboration and Partnership between customers and suppliers in the development of joint approaches to supply. The use of Supply Chain Agility in response to uncertainty in demand. The positioning of Demand Chain and Supply Chain Management. Whilst each of these articles is clearly targeted at the retail supply chain, there are lessons within each, which can be applied across both industry and the service sector. For those involved in the manufacture and supply of consumer products, this edition provides information on current thinking and examples of areas in which the industry excels. Whilst, for those of you working in other industries, I would urge you to read these articles, and look at the concepts being described. If business in general had not followed closely the improvement initiatives being undertaken by the automotive industry to reduce waste, we wouldn’t have the widespread and enthusiastic adoption of Lean thinking that we have today. If you ignore the industry references, these articles contain a number of transferable learning points, for example: There are considerable collaborative benefits to be gained from broadening the Customer/Supplier interface away from the traditional Sales/Purchasing discussions, simply by seeking ways to involve representatives from all functions involved in supply chain activities. The retailers are leading the field in this approach with the their development of CPFR (Collaborative Planning, Forecasting and Replenishment) However efficient your manufacturing process, you are at risk if you are unable to respond to customer demand. Therefore, there is a need to strike a balance between efficiency and effectivity to best serve corporate objectives and the needs of the customer. The benefits of agility are gained not only through a flexible and responsive supply chain, but also by developing and using flexible business processes, not just in terms of meeting sales order requirements, but also for demand data management and supply planning. The above, represent three very simple points that I’ve picked up from the articles in this edition, and which could be beneficially expanded within any business – what learning points can you identify for your business? David Aldridge, FIOM Page number: 4 Word count: 425 Related Topics: Supply chain