Supply chains and strategy
Global Logistics and Supply Chain Strategy magazine has a feature in its March issue about aligning your company's supply chain with your business strategy. The story highlights D-M-E Co., the Madison Heights, Mich.-based mold component supplier, as an example of a company that is finding a competitive advantage in this area. The story compares D-M-E's approach to that prescribed by the Massachusetts Institute of Technology's Supply Chain Center and to those used by Wal-Mart and Toyota. That might sound a little dry, but the bottom line will get your attention. According to the story, companies that synchronize their business strategy to their supply chain generate up to 73 percent higher profit, higher growth, and better shareholder returns. D-M-E is seeing a payback. The company has reduced its lead times by 80 percent, according to the story, and it has been able to tailor its supply chain practices to provide better service and more specialized products for its customers. The story also includes some tips for other companies that want to try this strategy. It's definitely worth reading, even for folks like me who aren't experts on supply chain management issues.
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