Supply Chain Checklist

Strategic • Are sourcing decisions and their potential inherent risks properly
Trade-Offs managed?
• Have we considered the full cost & benefit of own vs. outsource supply
and distribution strategy? What is the degree of reliance on local vs.
regional supply / competencies and support? What are the key risks,
which may disrupt the supply chain and their potential business impact?
• Are we optimising the balance between inventory covers and turns,
transit lead times, demand planning accuracy?
• How can we increase asset utilization without compromising flexibility
and responsiveness?

Customers • What are the Customers expectations? Are we fulfilling them?

• What is the length of the Supply Chain from order to shops availability
and how fast is the product movement through the supply chain?
• What steps can we take to reduce shrinkages (reported and hidden
costs)?
• Do we have reliable and strict stock aging & stock rotation
management throughout the end-to-end Supply Chain?
• Are there unexploited Routes to Market opportunities which can
improve product reach or efficient availability?
• Do we have the ability to develop preferential relationships with
Customers and Suppliers?
• How can we increase customer collaboration, develop joint
improvement programs that drive mutual benefits (e.g. availability,
reduce retail stock-outs, etc)?
• How can we enhance and offer differentiated customer service?
• How can we enhance the use of customer and consumer information in
the Supply Chains?
• Have we explored new technology enablers and platforms or initiatives
for exploiting business opportunities?

Supply Chain • How do we use means to enhancing the Supply Chain operational
Process efficiency & effectiveness?
efficiency & • Can we identify potential economies of scale in back office processes
effectiveness and organisation?
• Have we achieved desired level of Supply Chain cost transparency?
• Have we established clear ownership and accountabilities across the
Supply Chain processes and Business activities?
• Do we consistently implement the necessary performance measures
and indicators for a transparent and continuous improvement driven
performance culture?
• How are we preparing to managing sustained and increased levels of
complexity arising from diversity of products, channels, customers,
organisations and IT systems?
• Can we enhance supply chain flexibility and speed through e.g. process
or organisation re-design?

Ali Aliakbari  Page 1 
Demand & • What is the quality of the planning processes? How well are the Long
Supply Term Demand Planning, Consensus Demand Planning and Dynamic
Planning Forecasting processes embedded in the management process?
Effectiveness • Have we unbundled the different components of stock cover and
created visibility over their corresponding parameters (service level,
batch size, etc) so as to create a fact-based approach towards
removing constraints in the Supply Chain, leading to stock cover
reduction?
• How can we maximize product availability while reducing working
capital?
• Can we further improve speed to market and launch performances;
broader, faster deployment of new products, efficient and process
supported event management?
• How can supply chain contribute to improving promotional
effectiveness?

• How well is the synchronisation between the demand and supply plans
ensuring optimisation of capacity utilisation?

Physical • Is there a need to review our Distribution models in line with the Route to
Distribution Market Strategy?
Capabilities • Are there opportunities to redesign our distribution network based on
business requirements and total cost to serve expectations?
• Have we exploited the full benefit of the 'i2 in the Market' approach to
Logistics synergies and Distribution efficiencies, whilst maintaining an
agile Supply Network to achieve service levels appropriate for each
category and channel?
• Do we need to address Logistics capabilities in term of operations
effectiveness, information reliability and stock traceability?
• Do we need to address Logistics capabilities in term of operations
efficiencies, costs and performances delivery?
• Are existing Logistics operations compliant with the local and i2 rules and
regulations regarding Quality standards, Safety and Environment?
• Do we have mid/long term visibility of warehousing, storage, freights and
transport requirements?
• To what extent have we evaluated investments in fixed distribution
assets vs. outsourced logistics services/facilities in the strategy
implementation plans?
• Do we have the most efficient contracts with third party service
providers?
• Is there a need to run competitive tenders for upcoming distribution
contracts?

Human • Do we have the necessary supply chain skills and expertise to drive the
Development Supply Chain initiatives and if not what support is required from the
Centre?

Ali Aliakbari  Page 2