Checklist for managing supply chain

1. Understanding of the business environment

• Identifying the market characteristics of each product/service with the following:
• Customer needs
• Pressures from suppliers
• The level of competitor activity
• Undertaking SWOT analysis to better understand the business environment and your current position on the market

2. Making analysis of the business

• Analyze and summarize the existing competence of the business
• Define which operations are the core to the business and which ones can be outsourced
• Gather the essential information on customer needs
• Set strategic priorities to determine key areas of the business where supply chain management succeeds
• Analyse the current situation with the supply chain to identify suppliers, customers and relationships with them

3. Examining the existing supplier base

• Compose a list of the suppliers for each product/service
• Assess each of the suppliers against the performance criteria as follows:
• Price
• Reliability and responsiveness
• Delivery
• Quality level
• Product specification
• Sift out suppliers with the poorest performance
• Try to have as less as possible supplier base. The reasons are :
• Lower administrative costs
• More time to manage each supplier
• Better cooperation between the company and the supplier

4. Dividing suppliers into several categorizes

Divide supplier by groups such as "Under performing", "Preferred" and "Strategic"

Work at each of the groups to reach cost reductions in the supply chain:

• "Under performing". These suppliers bring few improvement ideas to the supply chain
• "Preferred" . Negotiate with these suppliers to ...

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