A supply chain strategy defines how the supply chain should operate to compete. While a business strategy constitutes the overall direction that an organization wishes to go, the supply chain strategy constitutes the actual operations of that organization and the extended supply chain to meet a specific supply chain objective.
Understanding customers’ underlying business requirements is key to developing your strategy.
Key focus areas
The below elements are some of the key focus areas to create a flexible structure capable of coping with volatility, change, and uncertainty.
- Finding the best balance between cost, service level, responsiveness, and sustainability;
- Improving integration along the supply chain for better efficiency, visibility and asset deployment;
- Reducing uncertainty in the supply chain to allow inventory reductions;
- Increasing focus on sustainable strategies.
For businesses in the petrochemical industry, safety and security standards are a top priority requiring close cooperation between shippers and service providers. The below elements require special attention:
- Selecting and continuous monitoring of the performance of service providers;
- Focusing on prevention and preparedness, making sure a proper emergency response system is in place.
A well-executed supply chain strategy results in value creation for the organization.
You can unlock the potential of your company and increase your success in your supply chain with the right strategy. Accordingly, you can realize savings, operate more efficiently, and be more competitive.
When it comes to creating and driving such value in your petrochemical supply chain, it’s often not easy to understand all the different building blocks. This is because we are often only focused on one part of the supply chain.
But, the process to start designing or optimizing your supply chain becomes much easier if you have the right guidance. A better understanding will lead to internal and external synergies, better negotiations, and new opportunities.
Interested? You may want to read our article – Driving Value In Your Petrochemical Supply Chain.
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