How a supply chain strategy secures your competitive advantage

Staying ahead of the competition requires more than just managing the status quo – it demands a clear, strategic vision for your supply chain. A strong strategy acts as the backbone of your entire organization, aligning your supply chain with your business objectives to create a seamless, efficient flow of goods and information. 

Without a clear plan, companies risk inefficiencies, rising costs and missed opportunities in an increasingly competitive market. Having an aligned strategic direction empowers your supply chain organization to support your overall business objectives.

A supply chain strategy should consist of a long-term supply chain target picture and measures to achieve it, all aligned with the corporate vision. Proven in over 300 customer projects per year, our practical four-step framework helps you achieve ambitious objectives with operational commitment.

Four steps to develop a supply chain strategy 

1. Clarify the corporate vision and strategy 

Together with the executive board, we align on cornerstones of the corporate vision and strategy as the first step. Consider aspects like the future global footprint, growth plans and product portfolio. This serves as a basis to define supply chain targets in terms of cost efficiency and service level, generally with the goal of either cost leadership or differentiation. 

2. Define guiding principles for the supply chain 

Once the corporate vision and strategy are aligned, we identify supply chain success criteria. These might include automating or digitizing a segment of the supply chain, for example, or switching to battery-powered vehicles for distribution. VPs and directors in charge of business operations should be involved in this process. 4flow provides global market insights and supply chain best practices as additional input for this step. 

These success criteria are clustered into organization-, process- and IT-related objectives. We then crystalize key priorities for all supply chain functions into guiding principles – for instance, connectivity, sustainability or resilience. 

3. Develop a strategic supply chain target picture 

Based on the results of the previous steps, we define measurable objectives for all major supply chain functions. Supply chain planning, supplier management, physical logistics, production, distribution and reverse logistics should be considered in this step. Each function should have a clear direction in terms of its organization, processes and IT. 

4. Establish a central team to lead the change 

Once your objectives are approved by company and supply chain leadership, it’s time to start putting your strategy into action. We help set up a central team with a clear roadmap and governance to manage the supply chain transformation. A strategic gap analysis helps you identify focus areas based on your status-quo and measurable objectives for each supply chain function. To close identified gaps, schedule and track clear actions and allocate necessary resources.

A supply chain target picture includes

A supply chain target picture includes guiding principles for the entire supply chain organization, as well as clearly defined objectives for individual functions

How a supply chain strategy moves your organization forward

A well-crafted supply chain strategy facilitates decision-making and brings a balance between cost efficiency and performance to your supply chain operations. 

Supply chain strategy – key to ensuring your competitive advantage 

Supply chain strategy helps you translate your corporate objectives into operational success – whether that means setting your business apart from the competition in terms of price, service or sustainability. 4flow’s four-step method helps you cement this advantage in your organization and ensure lasting change in your supply chain.