Myth-Busting Your Supply Chain Design: Tips for building resilience and efficiency

In today’s extremely competitive business environment, a robust and efficient supply chain is no longer a nice to have, but rather a necessity. It’s no longer a question of “if” disruptions will happen but “when.”

Despite the inevitability of these disruptions, many businesses and supply chain leaders still fall to common misconceptions about the design of their supply chain. Let’s take a look as some of those common misconceptions and debunk some of these myths to help you build a resilient and optimized supply chain.

Myth: The cheapest network design is always the best option

Truth: While cost is a critical factor, it should not be the sole consideration when designing your supply chain network. Other factors, such as service levels, redundancy, complexity, sustainability, and risk mitigation, should be carefully evaluated.  

If your service levels are so poor that customers won’t wait for their orders and take their business elsewhere, then the cost of transportation is irrelevant. A balanced approach, however, can lead to long-term cost savings and better overall performance.

Myth: Supply chain design is a one-time event

Truth: A well-designed supply chain is a dynamic system that requires ongoing review and adjustment. A supply chain network that was optimal in the past may not be optimal in the future.

Market conditions, customer demands, and technological advancements are constantly evolving, making it imperative to adapt your supply chain accordingly. Your business is always growing, evolving or changing in some fashion and your supply chain design needs to keep up.

Myth: Within the same industry, supply chain designs are identical

Truth: Even within the same industry, each business has unique requirements based on factors such as product characteristics, customer geography, supplier geography/relationships, risk tolerance, business goals, and much more. A one-size-fits-all approach to supply chain design is unlikely to yield optimal results. 

Myth: A supply chain design project is time-consuming and resource-intensive

Truth: While a comprehensive supply chain design project can be complex, the time and resources required can be significantly reduced by leveraging the expertise of a qualified consultant. 

Consultants can handle data analysis, network modeling, and presentations, allowing businesses to focus on their core operations. Outside support with the particular technical capability your business will only require for the duration of analytical effort is often quicker and more cost effective to moving to develop that same level capabilities internal to your business.

Myth: Supply chain design is a straightforward process that can be handled internally

Truth: Supply chain design is a complex task that requires a deep understanding of various factors including: business strategy, data analytics, network modeling, risk management, and much more. To ensure a successful and optimized supply chain, business leaders should consider consulting with experienced professionals who have the expertise, experience, and tools to navigate these complexities. 

By debunking these myths, businesses can make informed decisions about their supply chain design and develop a supply chain roadmap that is efficient, resilient, and aligned with their overall strategic goals.

In today’s dynamic and unpredictable world, a well-designed supply chain is a powerful differentiator. Seek expert and experienced guidance when needed and continuously adapt to unlock the full potential of your supply chain and provide your business with a competitive advantage.