When the annual review discussion takes place around the boardroom table, most executives proudly state how much of an asset strategic use of a supply chain has been. A successful supply chain will improve profitability and productivity. There is no denying, that when it all goes to plan, supply chains can play a significant role.
Rallivo users confidently monitor their supplier’s quality certificates. Careful diligence and use of software like the Rallivo platform, encourage dialogue and confidence, which in turn builds trust and strong partnerships for the future. High quality teams are formed and each piece of the network maintains the original ethos.
But what about when there is a negative impact? What about when it all goes wrong?
In 1999, the digital world of online ordering was starting to flourish. USA giant Toys-R-Us, proudly promised a Christmas delivery for all items ordered by the 10th of December. The company invested in a strong advertising campaign and they were rewarded with a deluge of orders. With a robust inventory, it should have been plain sailing.
Tens of thousands of orders had flooded in, but the Achilles heel was painfully discovered… The toys simply could not be picked, packed and shipped in time for the big day. Some employees gave it their best shot (most likely parents themselves), working 49 days straight to try to fulfil the wishes and dreams of the little recipients. Alas, the inevitable apology was sent out and policies put in place for the future.
Add to this, disasters such as the Denver Airport Baggage fiasco and Apple having a $1 billion order backlog due to an inflexible supply chain, it is clear to see that standards must be set and met.
It is hard to estimate the damage and long term impact of a disaster within your supply chain. Snap-on-tools lost control of its order management system in 1997 seeing a 22% reduction in profits. Nike saw 20% knocked off its company stocks when it went live with a new supply chain system in 2001. With hindsight, the company felt it should have phased in the system in a more measured way.
With a Rallivo account, you can see for yourself how it could benefit your company and your quality management procedure. So, if you want to avoid it all going wrong, register today.