Overview: The subject of supply chain management and logistics is most relevant to organizations dealing with physical products, rather than less tangible services. For companies producing or selling physical products, the key processes can be summarized as buy, make, move, store, and sell. While service-oriented firms also have a supply chain, for the purposes of this section, a marketing plan will be more applicable to a service firm than will the supply chain plan as described below.

Considerations: The subject of supply chain management and logistics planning is extensive. A comprehensive supply chain plan requires many participants. Who is involved with purchasing and procurement? Who understands the manufacturing processes or other assembly processes in place at the organization? Who knows where things are stored and maintained? Who arranges for transportation, travel, and related services? Which groups participate and contribute to the sales and marketing efforts of the firm?

Practices:

  • Document material flow, from internal and external suppliers to and from your organization.
  • Document internal and external demand and forecasting requirements for products.
  • Document needs for material requirements planning (MRP).
  • Document needs for capacity requirements planning (CRP).
  • Document inventory management practices in the organization.
  • Document procurement and supplier plans.
  • Document financial and physical controls, and reporting activity processes.
  • Identify weaknesses in each area documented, along with alternatives to prioritize and sequence the work.
  • Draft summaries of the top recommendations, then construct a project plan for each recommendation as described in an earlier section.