Cleaning out the attic may be a complicated and time-consuming affair, but when the alternative is living underneath a giant growing fire hazard, the benefits outweigh the inconvenience. The same idea applies to spending the time and money to redesign a rusting supply chain. Simon Bragg, Richard Stone, and Julian van Geersdaele write for DC Velocity about seven signs it is time to get the ball rolling on a redesign:
- You have objectives rather than strategies.
- People ask: Why do we do things this way?
- The number of products and consumers is growing faster than your budget.
- Consolidation or collaboration is coming.
- You experience a major service failure.
- Fear is in the air.
- It’s time to renew a third-party logistics contract.
The authors start that in spite of fears of such a project taking an eternity to execute, in most cases, the initial stage of estimating what needs to be altered only takes about 20 days. Calculating cost of change and potential reduction in supply chain costs takes another 50 to 100 days. Read the full article for deeper information on each of the seven warning signs outlined here.