Last week we discussed in our blog about the complexity in the supply chain. On that occasion we focused on finding its origins, where it comes from and why it seems to be in constant growth. Today we want to focus on finding a solution, on seeing what methods we can use to try to reduce logistical complexity.
5 resources to reduce logistics complexity
The report from the University of Michigan that we were looking at proposes a series of recommendations to deal with this seemingly endless complexity.
It is not necessary to reduce what, from the beginning, does not exist. This is not to say that the authors of the report are so inexperienced that they plan to dismiss logistical difficulties as complex. However, they do encourage careful analysis of what is adding value in our supply chain and what is, on the contrary, adding little or no value relative to the amount of complexity involved.
“Broadly speaking, it is important for the supply chain to discuss potential changes to company-level strategy, objectives, and processes to ensure that the company is still capable of delivering value to the external customer and to the customer. internal”, explains the document.
Having people by your side who make your life easier is priceless. All of us, as customers or as companies, have ever felt that the relationship with a brand or a supplier has been a pool of oil and, in other cases, a purgatory. And that makes things so much easier.
Much of the complexity comes from the ongoing technological revolution in which we live. For this reason, in order to reduce logistical complexity, it is as important to have a good information technology structure as it is to know what innovations we have to get on board and when we have to do it.
An accessible leadership
“Having the right person in the room, at the right time, is critical,” the University of Michigan report states. In this way, he defends that both the highest executives and intermediate positions must be available so that the different levels of the company can share information, problems and solutions with each other effectively.
If we build a structure in which information and the capacity for dialogue are obstructed by too strong a hierarchy or by people who are not personally or professionally accessible, we will be making it more difficult to make the right decisions at the right time.
Understanding between client and supplier
In this section the study finds a double aspect in this mutual lack of understanding. On the one hand, among the customers surveyed, complaints were collected regarding the little understanding on the part of logistics operators about how closely their service is integrated with the value proposition made by companies.
From the point of view of logistics operators, the responses demanded the same misunderstanding, but in this case about how customer demands affected processes and logistics complexity. “Reducing exceptions in processes will help companies achieve better performance,” the study says.