Crumbled Supply Chain – Integrated Planning is the Solution!

“One of the only ways to get out of a tight box is to invent your way out.” ~Jeff Bezos, CEO Amazon

Integrated means various functions within the business linked or coordinated.  The key objective of integrated Planning is working towards a common goal with the interactive and linear approach. Business functions within the organisation collaborate and not isolate.  The purpose is to create a strategic plan and a non-reactive plan.

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The objective is achieved through identifying and developing a business plan of growth categories; focus on liquidity targets, and achieve margin targets.  All these objectives have to be sustainable and minimise business risk by developing a business governance process.

A reactive or crumbled supply chain is a symbol of anarchy.  Every function within the business has silo goals and working toward them, ignoring common goals and with no focus or sustainability excellence.  In short, achieving sustainable excellence means adopting new ways of conducting business and new ways of thinking about global challenges. This type of Supply Chain is non-sustainable, particularly during an unprecedented situation like a pandemic-influenced global economy.

Let me show two different models – disintegrated and integrated for better understanding.

Figure – 1: Integrated Model

Figure – 2: Disintegrated Model:

If one carefully observes both the models, the critical difference is lack of value addition and not driven by the vision. We are in the process of transforming from a supply chain to a value chain.  Value chain analysis is the process of looking at the activities that go into changing the inputs for a product or service into an output that the customer values. Product differentiation and value addition are the key two leavers for a business miracle. 

Let us look at some examples.  An example of product differentiation is when a company emphasizes a new product to market that sets it apart from others already on the market. For instance, Tesla differentiates itself from other auto brands because its cars are innovative, high-end, battery-operated, and value-added.

One industry not as frequently thought of as a value-added reseller is the furniture industry. However, to increase sales revenues and build customer loyalty, furniture stores offer additional services such as interior decorating, either in a consulting or direct service capacity.

The Australian economy made a full recovery from the pandemic-fueled downturn in the March 2021 quarter. Consumer spending driving growth due to record low-interest rates, low unemployment rate, and rising house prices. The IMF forecast Australian growth of 4.5 percent in 2021, which compares with a long-term trend of around 2.8 percent.  The entrepreneurs should lean towards robust Integrated Planning to add value and product differentiation to rekindle the economy further.

The world bank on the 8^th of June 2021 indicated that The global economy is expected to expand 5.6% in 2021, the fastest post-recession pace in 80 years, mainly on solid rebounds from a few major economies. However, many emerging markets and developing economies continue to struggle with the COVID-19 pandemic and its aftermath.  In summary, “Global Recovery Strong but Uneven as Many Developing Countries Struggle with the Pandemic’s Lasting Effects.”