Five ways to simplify your supply chain
Summary:
The purpose of this article is to provide five ways of simplifying the supply chain, as ongoing globalisation has brought increased complexity to mostly every aspect of the business world, and supply chains are also affected to a large extent. Overly complex supply chains are not adaptable so many companies are facing failures. The only way left is to reduce complexity in supply chains by using different techniques. Companies with more mature supply chain practices can reduce costs and can achieve higher profits. Industry leaders are using this advantage to increase market share and are competing effectively. Innovation in supply chain can transform the industry in which firm competes, companies like Dell, Wal-Mart and Zara has done the same and have met the success. Physical breadth and configuration, relationship with suppliers and customers, management and organizational structure are some of the physical factors which have contributed to the problem.
There are number of causes to complexity in supply chains as competitive pressure, lack of an integrated functional approach and time factor. Contrary to this, simplification is one such factor that can impact the entire supply chain, and can yield satisfied customers through following factors. More responsiveness Lower operation costs Consistent quality Enhanced performance

Customer Satisfaction

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If a process can be made simpler it usually performs better.
The complexity reduction framework breaks down supply chain complexity into its component parts. Since supply chain is a process view of a company’s logistical activities, it is appropriate to break down it into process elements, which in turn can be defined into “performance levers” that can be modified to increase supply chain performance. Outbound supply chain is