SUPPLY CHAIN SELF ASSESSMENT

 

SUPPLY CHAIN MANAGEMENT

SELF-ASSESSMENT

 

 

Identify problems with your supply chain strategy and performance. Make sure what you are doing meets what customers want and at a sound cost.

 

 

LTD MANAGEMENT

610.715.3710

ltdmgmt.com

COMPANIES ARE NO LONGER COMPETING AGAINST EACH OTHER.  THEY ARE COMPETING AGAINST SPEED.

Marc Benioff, Salesforce

The pandemic created a new normal.  Things are moving faster.  Do your customers expect more?  Do they want their orders delivered complete, accurate, and on time?  Are you squeezed as to costs?

Do you react to what is happening  Do the reactions mean more firefighting and expediting? 

If this is you, you are not alone.  Many mid-size firms struggle to do supply chain management well. 

The result means supply chain management is about costs, rather than its performance and being a strategic part of your company's growth.  Remember, high supply costs and high inventory levels are both a problem and a symptom of a problem or problems.

How does this happen?  Basically, it is--

1)    You probably don't have a solid supply chain management strategy.

2)    You probably don't know about end-to-end supply chain management and what you can do to get the traction you need.

3)    You probably don't have the tracking/metrics in place to know.

But you can fix this.

 Successful supply chain management start with a plan.  If you are committed to growing your business in this time of disruption and a new reality, this self-assessment is a great first step to identify the strengths and weaknesses of your supply chain.  A starting point.

GET STARTED!

The first step in the assessment to know where you are.  This supply chain assessment will help you to identify problems and holes in your supply chain strategy.  Each question is part of a success supply chain process and plan.

Instructions:

·       Rate each statement on a scale of 1-5.

·       Add up your score at the end.

·       Discuss the results.

 

1.    We are very satisfied with our supply chain costs.

2.    We are satisfied with our freight/transportation costs.

3.    We can clearly define our end-to-end supply chain.

4.    We can explain how our supply chain has competitive advantage and is better than our competitors. 

5.    We have a written supply chain plan that is tied to the strategy of our business and its goals.

6.    We view our supply chain as shipping, receiving, and warehousing.

7.    We are very satisfied with our supply chain performance.

8.    We are very satisfied with our inventory levels and turns.

9.    We measure our inventory turns as a way to metric for supply chain performance.  Inventory includes finished goods, raw materials, components, and other items used in production and sales.

10. We monitor our in-transit materials/inventory.

11. We work continuously to improve our inventory turns.

12. We are never out of stock of materials/inventories.

13. We do not do nor need to do firefighting / expediting.

14. We accept our inventory situation as a cost of doing business.

15. We do not think our supply chain is a pain point.

1.    We measure our customer perfect order performance of delivering orders complete, accurate, and on time.

2.    We work continuously to improve our customer perfect order performance.

3.    We measure our supplier perfect order performance of delivering our purchase orders complete, accurate, and on time.

4.    We are very satisfied overall with our supply chain.

                              TOTAL POINTS: ___________

                               95 POINTS IS MAX SCORE

 

A EXCELLENT.  87-95 POINTS.  You are doing great and have a solid supply chain strategy and program.  While there's always room for improvement, you have a clear understanding of what's working and how to use supply chain management to drive success,

B GOOD.  78-86 POINTS.  You have a good supply chain strategy and program.  You are positioned to grow your business.  However, you should review your score to make improvements to accelerate your growth with supply chain management.

C NEED IMPROVEMENT. 67-77 POINTS.  Your supply chain needs help. While you're doing some things right, you're missing major fundamentals of a good supply chain plan. For consistent success, you should review your low scores and create action plans to improve and expand your supply chain efforts.

D IN DANGER. 57-66 POINTS.  You may be putting your business at risk because you don't have an effective strategy or tactics in place.  At this point, you are just doing stuff.  Meet across the company to start building a strategy and action plan to improve.

F SUPPLY CHAIN FAILURE. 56 POINTS OR LESS.  Your business may be struggling to survive because you don't have the supply chain in place to compete to satisfy customers and to drive growth. You need a top to bottom redo of what you are doing.  Meet with your key people to discuss building a strategy and action plan for improvement.

 

NEED HELP?

Supply chain management has moved front and center to what is expected of businesses.  If you need help improving your supply chain or any part of it, we are here to help!  At LTD Management, we specialize in results driven supply chain management consulting.  When you face tough supply chain challenges, LTD can work with you to understand the realities and to develop the best path for change.