Supply Chain “Management”

One of the hottest majors at major colleges and universities is now Supply Chain Management. If you look at their curriculum, you will see courses in Marketing, Operations, Logistics, and then more intense areas of focus in Strategic Global Sourcing and Supply Chain Analytics. Through many years of being directly involved with the requirements of maintaining a healthy supply chain, I have witnessed the progression of utilizing sticky notes and whiteboards to fancy supply chain titles and computer programs.  However, it is only progress if the customer is still their first priority especially now when most companies are outsourcing raw materials and/or finished goods from everywhere.

True supply chain “management” still requires a strong relationship between Sales, the Customer Service team, and the customer because it starts with raw materials and never really finishes.  The reason medical device companies must have good change control procedures is because of the constant changes in the materials ecosystem.  Suppliers are investing in Operational Excellence departments to look for any way they can to reduce their internal costs, including reducing their product offering or eliminating choices that they have been offering customers. I can only assume Baskin Robbins is now down to only 16 flavors??

A true supply chain management company must be managing the entire lifecycle of the operations process.  They must have their pulse on the raw materials, the manufacturing processes, and timelines, and on the integral requirements of getting their products from point A to point B (the customer’s desired location) as consistently, and as timely, as possible. Those that are successful at doing that will keep acquiring new opportunities for growth.

Customers want and need to reduce their costs by finding partners who will provide them with favorable pricing since good quality is an assumed “must-have” in the medical device field.  Those customers who are able to find a partner who can also manage the entire logistics process are ahead of the curve. Supply Chain teams have enough on their plates keeping their own Operations and Marketing people happy while achieving their personal KPIs; they certainly do not want to have to babysit their outside partners.

Most customers are willing to spend on those that provide more than just the widget… a lot more.  So, when choosing a contract manufacturer, find an outsourcing partner that treats you as their first priority, fancy computer system or not.