Many organisations have let their supply chains become tangled, complex, unmanageable supply webs.
The goal should be to simplify the supply chain by first minimising part numbers and financial transactions between the various business entities that make up the supply chain. Next the Supply Chain should be aligned and tiered. Alignment will ensure responsibility for a product or service is focussed and provided by a limited number of 1st tier suppliers. These suppliers should be encouraged to develop themselves so that the tiers below them are under their full control. Simplification makes the supply chain visible and transparent to all links within it and minimize reliance on complex information systems (while IT is a critical component, it should not lead or be central to the supply chain effort, but rather support a well designed structure).