5 Types of Supply Chain Strategies for Every Sourcing Hero
Explore the superpowers offered by various types of supply chain strategies that businesses can adopt to meet their objectives.
By Hugo Britt | June 29, 2023
At Una, we lovingly refer to procurement professionals as “sourcing heroes.” Like superheroes, each has their own super-achievements worth noting as they work tirelessly to protect and better their own organizations. And, one of the best things about comic-book heroes is their incredible diversity.
From Batman to Wonder Woman, Black Panther to Deadpool, every hero has a unique background and set of abilities.
Supply Chain Strategies
The same can be said for the similar amount of diversity found in the world of supply chain management. Every organization’s supply chain strategy is different, based on factors ranging from business size, location, the supplier base, categories, domestic vs global supply chains, and more.
To optimize operations, reduce costs, and enhance customer satisfaction, organizations employ different supply chain strategies tailored to these unique requirements.
In this article, we’ll explore the superpowers offered by various types of supply chain strategies that businesses can adopt to meet their objectives.
Every organization’s supply chain strategy is different, based on things like business size, location, the supplier base, categories, domestic vs global supply chains, and more.
Agile Supply Chain
Superhero: The Flash
Superpowers: Superhuman speed, agility, and reflexes
Like The Flash, an agile supply chain strategy emphasizes flexibility, adaptability, and responsiveness. It focuses on quickly adjusting to changing market conditions, customer demands, and unforeseen disruptions. An agile supply chain achieves this by implementing real-time demand sensing, collaborative forecasting, and cross-functional coordination.
This strategy is particularly beneficial in dynamic industries with short product lifecycles, such as technology and fashion, as it enables organizations to swiftly respond to shifting market trends and disruptions (even massive ones like Covid) to maintain a competitive edge.
Lean Supply Chain
Superpowers: Makes the most of limited resources
A lesser-known X-Man, Gambit has the ability charge everyday objects with explosive energy, thus turning them into deadly weapons. Armed with nothing more than a staff and a deck of cards, Gambit is adept at working with very little to achieve impressive results.
The lean supply chain strategy aims to minimize waste, optimize efficiency, and improve cost-effectiveness. It prioritizes the elimination of non-value-added activities and streamlining processes to enhance productivity and customer value.
Adopting lean principles such as just-in-time manufacturing, continuous improvement, and total quality management, businesses can reduce inventory levels, decrease lead times, and enhance overall operational efficiency. The lean supply chain strategy is especially prevalent in industries where cost reduction and waste elimination are critical, such as automotive and manufacturing.
Responsive Supply Chain
Batman may not have any superpowers as such, but he makes up for it in sheer responsive ferocity. Responding to the Bat-signal, the Caped Crusader wastes no time in entering his Bat-Cave, donning his Bat-suit, Leaping into his Bat-mobile, and rushing off to clobber some bad guys.
The responsive supply chain strategy focuses on meeting customer demands quickly and accurately. It emphasizes aligning supply chain activities with customer requirements through effective demand management and customization.
By utilizing real-time data and advanced forecasting techniques, organizations employing a responsive supply chain strategy can anticipate customer needs, reduce lead times, and deliver products and services promptly. This strategy is highly effective in industries characterized by high demand uncertainty, such as fast-moving consumer goods (FMCG) and e-commerce.
Green Supply Chain
Superhero: Captain Planet
Superpowers: Earth, Wind, Fire, Water, Heart!
“Gooooo Planet!” Fighting pollution and standing up for Mother Nature, Captain Planet is most effective when collaborating with his team of Planeteers.
The green supply chain strategy integrates environmental sustainability into supply chain practices. It involves adopting eco-friendly processes, reducing carbon emissions, and managing waste throughout the supply chain. Organizations embracing this strategy focus on sourcing sustainable materials, implementing energy-efficient transportation methods, and working with suppliers to promote recycling and waste reduction initiatives.
The green supply chain strategy not only helps mitigate environmental impact but also enhances brand reputation, meets regulatory requirements, and appeals to environmentally conscious consumers.
Collaborative Supply Chain
Superheroes: Teenage Mutant Ninja Turtles
Superpowers: Mutant Ninja Team Collaboration
There’s a recurring theme in Ninja Turtles where if any of the heroes venture out alone, they get beaten up by the bad guys. But when they team up and support each other with their unique abilities, they’re unstoppable.
The collaborative supply chain strategy is all about close collaboration and information sharing among supply chain partners. It fosters strong relationships and effective communication between suppliers, manufacturers, distributors, and customers. By integrating systems and sharing data, organizations can enhance visibility, optimize inventory management, and streamline logistics.
This strategy is particularly beneficial in complex supply chains where multiple stakeholders are involved, such as in the retail and healthcare industries.
Be a supply chain hero
Understanding the different types of supply chain strategies will help you unleash your Sourcing Hero superpowers to meet specific objectives, whether it be agility, cost reduction, responsiveness, sustainability, or collaboration.
Ultimately, an effective supply chain strategy can drive operational excellence, enhance customer satisfaction, and contribute to long-term success.
Now, Goooo Planet!