Strategic Planning Improves Expectation

Strategic Planning Improves Expectation

Another factor that improves the supply chain network and creates a strategic advantage is the identification of and the transacting with manufacturers or outsource manufacturer who are able to transform the goods that have been delivered fast and cheap into finished products or partially finished goods. The key is Better.

If business or organization can transform the supply, that has been delivered fast and cheap, into finished products, then the strategic plan should involve in-house manufacturing. However, if an outfit out there can do the job better and probably cheaper, then it is always the rational way to do business. Strategic planning improves the expectation of business or organizations. They can now decide who will do the process better, and not regret in some future date.

Most of the toys, consumer electronics and even household goods are made in China. The strategic consideration of course is expectation. These guys can do it better. Not only can they do it faster and cheaper, they also can do it better. This is the primary reason why many manufacturers have partially done the manufacturing process or fully given the manufacturing process to outsource manufacturers commonly known as sub-contractors.

In the event a new entrant happens to do the manufacturing process better, the strategic planner has to seize the opportunity but then as he still needs the previous manufacturer, he then needs to incorporate the new relationships, anticipating complexities that may eventually arise in the future. The search for the better should form part of the strategic plan. In a world that is constantly changing, the business or organizations that can do its process better might be the only ones left standing.

Strategic Planning Improves Evolution

People do evolve, so does the product. Evolution and change is another key factor that must be incorporated in strategic planning. Lifestyle changes and patterns affect product evolution and product delivery. The key is Better and better.

The strategic planner has to visualize how lifestyle changes and patterns affect product delivery. Years ago, a large segment of the working class worked regular 40 hour weeks Monday to Friday. That is not so true today. Many still work 40 hour weeks or more but on different shifts and in different locations. The 24/7 establishments evolved to cater to these lifestyle change and pattern. From the initial grocery stores that started to open 24 hours a day, 7 days a week, now comes the high-end stores, gyms, entertainment arcades and a host of other industries.

Supply chain strategy calls for an evolution in the delivery and distribution to ensure everyone gets everything they need in the exact time. If there has to be delivery and distribution at 1:00 in the morning, business or organizations must evolve to answer this end-user need. Neglect it and others will do the evolution for you and you might be on the verge of extinction.

Doing things better and better must be a passion that the strategic planner must not forget to consider. This passion must be present not only in product design, in product manufacturing but in product delivery as well. The supply chain has to constantly evolve to cater to the needs of the constantly evolving end-user and their world. The business world has actually become a world without any clear boundaries. Where it used to be that office hours was 9 to 5, now the definition of office hours is so loose it can be any time in the twenty-four hour clock.

Strategic planning is extremely important in supply chains. It may spell the difference between healthy business or organizations, or business or organizations that have contracted a life threatening disease. Supply chains are lifelines; strategy must be able to keep them alive and well.