OPERATIONAL EXCELLENCE
applies to people , facilities and supplies . Basically , you ’ re ‘ cutting the crap ’ out of the cost . Companies are not only practicing it for materials , but they are challenging all of the non-core competent services and functions that it performs . They ’ re asking , ‘ Should we be doing this function ?’ Supply chain is usually one of these functions .” Kunkel notes the short-term gains from stripping back your supply chain could lead to long-term risks , so advises caution when outsourcing supply chain needs . “ The thirdparty provider should fit into the client ’ s existing core process . The client shouldn ’ t deviate from its existing process due to the investment and infrastructure behind it .” He believes there are two types of improvements companies will see when applying a zerobased approach : a superficial improvement that may look good on paper , but not remove waste and the more desirable “ functional improvement towards reducing inventory and lead time to deliver a tangible benefit ”.
Ultimately , it ’ s important to remember there is no magic wand , problems don ’ t simply go away . But by moving towards a new approach such as ZBSC you can manage them more efficiently . Accenture ’ s report concludes : “ Companies cannot afford supply chain trade-offs . For too many , cost optimisation , technology , growth and sustainability are mutually exclusive . ZBSC is a starting point to harmonise these goals . Finally , there is a new way to deliver superior supply chain performance at the right cost - while fuelling growth and increasing competitiveness .”
40 February 2018