Olivier Audino
Supply Chain Management (SCM) covers all processes that coordinate physical, financial and information flows. In a context marked by demand volatility, cost pressure and dependency on global supplier networks, mastering the supply chain has become a real driver of competitiveness.
Improving supply chain performance is not only about cutting logistics costs. It is about optimising data flows, anticipating risks, aligning operations and strengthening collaboration between procurement, logistics, production and finance teams. Organisations that adopt this approach gain better visibility over their flows, reduce stockouts, accelerate operational lead times and secure their customer commitments.
This article presents a structured method to analyse, manage and optimise your supply chain, relying on the most effective levers used today by procurement and operations leaders.
The supply chain is based on a set of closely linked flows: movement of products, information exchanges, financial commitments and coordination of internal and external stakeholders. Effective SCM requires a clear view of these dimensions in order to identify stress points, risks of disruption and improvement potential. Companies that formalise this vision within an end-to-end approach to their supply chain gain operational stability and the ability to anticipate.
Physical flows are the movements of products: procurement, transfers between sites, storage, picking and delivery. They are directly linked to customer service levels, stock levels and transport costs. A high-performing supply chain aims to limit unnecessary back-and-forth, reduce waiting times and adapt logistics schemes to real needs.
Information flows include forecasts, orders, shipment notices, stock data, returns and performance indicators. A degraded supply chain is often characterised by incomplete, late or contradictory information. Conversely, reliable data sharing between procurement, production, logistics, finance and external partners makes it possible to anticipate demand variations, secure commitments and adjust production plans.
Financial flows cover spending commitments, payment terms, invoicing, variance management and inventory-related costs. SCM is not limited to operational aspects: it directly influences working capital requirements, cost structure and the predictability of financial results. A well-managed supply chain reduces unnecessary capital tied up in stock and aligns financial flows more closely with operational reality.
SCM requires a high level of coordination between functions. When procurement negotiates without visibility on logistics constraints, or when production plans without considering lead times, the risk of stockouts, overstock or additional costs increases. Aligning objectives, KPIs and priorities across functions is a prerequisite for improving supply chain performance.
Strengthening supply chain efficiency requires a structured view of improvement areas. The most advanced companies work simultaneously on digitalisation, synchronisation of stakeholders and control of operational variability. This approach fits naturally into overall performance management, where each lever contributes to reducing risk and improving process flow.
Digitalisation brings reliable data into logistics processes: traceability of movements, automatic stock updates, synchronised orders and electronic data interchange with suppliers. Companies that automate their flows reduce manual errors, accelerate decision-making and improve forecast accuracy. References from the Association for Supply Chain Management (ASCM) highlight the importance of an integrated information system to ensure consistency of operations.
A high-performing supply chain relies on the ability to connect suppliers to internal systems, especially to share availability, shipping lead times, incidents and capacity. This transparency supports better planning, anticipates stockouts and protects business continuity. Companies that structure these exchanges achieve significant reductions in delays and stock discrepancies.
Supply chain performance depends heavily on forecast quality. By combining historical data, market signals and operational constraints, organisations improve their ability to anticipate volumes and adjust resources. Advanced planning helps reduce overstock, optimise production schedules and lower the risk of stockouts on strategic items.
Variability — quality defects, transport delays, planning gaps, logistics incidents — strongly disrupts the supply chain. High-performing companies seek to stabilise these factors by improving process reliability, standardising key steps and implementing continuity plans. Reducing variability improves lead times, limits extra costs and strengthens service quality.
Supply chain performance is closely linked to the level of coordination between procurement, logistics, production and finance. When these functions work in silos, decisions lack consistency, lead times increase and operational risks rise. In contrast, structured collaboration improves visibility of needs, strengthens risk management and facilitates flow planning. Companies that adopt this approach see a clear improvement in their operational reliability.
Procurement teams hold key information on suppliers: capacity, reliability, geographic and financial risks. These insights are essential to anticipate disruptions and secure supply. A structured supplier analysis approach enhances the supply chain’s ability to prevent incidents and adjust plans based on real market conditions.
Product quality and availability depend on alignment between internal needs, purchasing specifications and logistics constraints. Better communication between teams reduces discrepancies, addresses issues earlier and maintains a stable service level. This coordination also limits uncontrolled variability affecting production.
Collaboration between procurement and the supply chain has a direct impact on total costs. A purchasing decision taken without visibility on operational constraints can generate overstock, returns, urgent adjustments or unplanned transport. Studies from the Council of Supply Chain Management Professionals (CSCMP) show that cross-functional coordination can reduce up to 20% of costs associated with flows and logistics disruptions.
Supply chain performance is measured through indicators that assess flow reliability, service quality and control of operating costs. These KPIs steer day-to-day decisions and help quickly identify fragile areas. The most advanced companies integrate them into a dashboard to track performance trends and adjust plans continuously.
OTIF measures the ability to deliver products at the right time, in the right quantity and with the expected quality. A high OTIF reflects strong control of logistics processes, while unstable OTIF often indicates issues with planning, transport or supplier coordination.
Inventory turnover measures how fast stock is renewed. A high turnover shows good alignment between real demand and stock levels. Very low turnover can signal overstock, poor forecasting or lack of visibility on requirements.
The stockout rate reflects the inability to meet demand due to product unavailability. It is a critical indicator for customer satisfaction and business continuity. It also reveals limits in planning and supplier coordination.
Logistics costs include transport, storage, handling and picking expenses. They are a key lever for optimising operational margin. The European Logistics Association (ELA) regularly emphasises that improving these costs requires better flow synchronisation and automation of low value-added tasks.
Improving supply chain performance requires a structured approach combining diagnosis, flow mapping, action prioritisation and results tracking. The goal is not to transform everything at once, but to focus on areas that generate the most instability, cost and complexity.
The starting point is to assess the current situation: service levels, stockout rate, inventory turnover, forecast accuracy, transport performance and suppliers’ ability to meet commitments. This diagnosis is based on factual data and feedback from operations, procurement teams and internal customers. It highlights the gaps between target performance and on-the-ground reality.
Flow mapping helps visualise the complete path of products, information and decisions. By representing key steps, interfaces and waiting times, the company can highlight bottlenecks, overload areas and duplicates. This exercise is particularly valuable when linked to a structured approach to supply management, connecting sourcing choices to their operational consequences.
Not all improvement initiatives have the same impact or require the same effort. Building an impact/effort matrix makes it possible to sort actions into four categories: quick wins, high-potential projects requiring significant resources, secondary improvements and low-return actions. This prioritisation helps focus resources on initiatives that will deliver the most significant results.
The improvement plan should define target objectives, KPIs, owners, timelines and resources. It can include initiatives on information systems, flow organisation, supplier relationships or internal processes. Best practices highlighted by publications such as Supply Chain Quarterly underline the importance of gradual roll-out, with measurable intermediate results.
Once actions are implemented, tracking supply chain KPIs is key to assessing the actual impact of the plan. Gaps between targets and results guide adjustments to make: refining forecasts, revisiting stock rules, adapting logistics schemes or strengthening certain supplier partnerships. This continuous learning loop is essential to stabilise performance and sustain a high service level.
An industrial company was facing recurring supply chain issues: frequent stockouts, production delays and additional logistics costs. Despite a significant transport budget, lead times remained unstable and stock levels regularly exceeded defined thresholds. The initial analysis revealed several root causes: incomplete forecasts, limited communication with suppliers and poor synchronisation between procurement, production and logistics.
The company recorded a 14% stockout rate, logistics costs 22% above the sector average and irregular stock levels. Operations teams also reported frequent discrepancies between production needs and available quantities, leading to disruptions in manufacturing lines.
A supply chain improvement plan was built around four pillars: better forecasting, deployment of real-time indicators, synchronisation with key suppliers and optimisation of the logistics network. Transport strategy was redesigned to rationalise routes and reduce operational disruptions, leveraging best practices in logistics cost optimisation to align decisions with operational reality.
In less than twelve months, the stockout rate dropped from 14% to 4%, inventory turnover improved by 18% and supplier delivery reliability increased by nearly ten points. Logistics costs decreased by 12% thanks to fewer discrepancies, consolidated shipments and better capacity utilisation. Analyses published by organisations such as Supply Chain Canada confirm that this type of progressive, flow-stabilisation approach is one of the most effective levers to improve operational performance in industrial organisations.
Strengthening supply chain performance starts with a precise understanding of flows, close collaboration between teams and the ability to anticipate demand variations. Mastering SCM provides more reliable operational visibility, reduces risk and improves service quality across the entire production and distribution cycle.
Companies that invest in data synchronisation, advanced planning and logistics process optimisation rapidly see measurable gains: stabilised lead times, lower costs and stronger resilience to disruptions. Supply chain performance then becomes a strategic asset that supports growth, improves customer satisfaction and secures long-term commitments.
If you want to strengthen your supply chain performance and design an SCM approach tailored to your challenges, you can speak directly with our specialists. Reach out to our dedicated team to define priorities and the right actions to implement.
Supply Chain Management (SCM) refers to all processes that manage an organisation’s flows: procurement, production, storage, transport and information coordination. Its purpose is to guarantee product availability at the right time, in the right place and at the most controlled cost possible.
Improvement comes from digitalising flows, integrating suppliers, setting up advanced planning and reducing operational variability. Continuous data analysis supports better decisions and helps identify priority improvements.
Core indicators include OTIF, inventory turnover, stockout rate and logistics costs. Together, they measure reliability, service quality and economic efficiency of the supply chain.
Risk reduction relies on supplier assessment, diversification of sourcing, monitoring of early warning signals and deployment of preventive action plans. A structured risk management approach strengthens resilience and business continuity.
No. SCM covers the entire value chain: procurement, planning, production, logistics and finance. It is a global approach that aims to synchronise all functions to ensure smooth and high-performing operations.
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