Kimberly-Clark is known as the company with the most effective supply chain management, and it was ranked 20th in the list of the top 25 companies with the best supply chains (Blanchard, 2015). The company’s supply chain is supposed to be one of the best because the company has been working on its supply chain management for many years, and long ago it has established a long-term goal of improve cooperation with its supplying partners.
The company has also put many efforts in increasing sustainability and decrease deforestation, as the company’s business processes are based on the use of paper produced from wood.
One of the key points of the company’s strategy is delivering a sustainable cost reduction, and the company achieves the goal by improving manufacturing productivity, negotiating raw materials prices, and investing into the supply chain management to make it more effective (kimberly-clark.com, 2015). Also, the company’s strategy is aimed at improving relationships with suppliers and increase the number of suppliers that the company deals with.
A developed and well-defined strategy of the company can help it achieve its goals, as a clear plan can help the company determine the company’s short-term and long-term priorities. Kimberly-Clark’s strategy is also focused on managing its portfolio to balance cash flow and profitability, and the company’s profitability is influenced by the price of raw materials set by suppliers and the effectiveness of the company’s supply management.
There aren’t many strategic directions of the strategy that can be improved or changed, as strategy is aimed at achieving goals in different business areas. As a conclusion, it can be stated that the Kimberly-Clark company is so successful because it has a well-developed business strategy, and one of the key points is an effective supply chain management.
References
Blanchard, D. (2015). Top 25 Supply Chains of 2015. Industry Week. Retrieved 1 May 2016 from http://www.industryweek.com/supply-chain/top-25-supply-chains-2015#slide-5-field_images-167391
Kimberly-clark.com. (2015). Company Strategies. Kimberly-Clark. Retrieved 1 May 2016 from http://www.cms.kimberly-clark.com/umbracoimages/UmbracoFileMedia/2015 Fact Sheet_umbracoFile.pdf
