No matter how well your company’s internal processes are operating and in spite of your commitment to continuous improvement, if your suppliers are not fully aligned with your efforts, you will have a very difficult time competing in the global economy.
Likewise, if you, as a supplier to other manufacturers, are not operating as an effective supply chain partner, your time as a suppler may be short lived.
The Role of Supply Chains and Supply Chain Management
Supply Chain Management involves the flow of products and services from raw material suppliers to parts manufacturers to end product manufacturers. Products are then distributed through wholesalers, distributors and retailers to the ultimate end user. This flow is connected by transportation and storage activities and managed through the flow of money and information.
The Supply Chain Council defines supply chain management as “Managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels and delivery to the customer.”
The Elements of Supply Chain Management
Supply chain management is comprised of activities at the strategic, tactical and operational levels, including:
• Sourcing/Procurement
• Forecasting
• Production Planning/Scheduling
• Capacity Planning
• Order Processing
• Cash Flow Management
• Inventory Management
• Warehousing/Transportation
• Customer Service
• Information/ERP Systems Management
Integrated Supply Chains Spell Success
Supply chain integration is not easy. It requires hard work and focus on both your company’s internal processes and the relationships that you have with your suppliers.
But, when your supply chain is effectively integrated, the rewards can be great. In the global economy, with supply chain competing against supply chain, integration becomes even more important to you.
Every company has unique characteristics that affect potential results. But, according to a recent benchmark study, when a company achieves supply chain integration, it may experience:
• Inventory Reduction from 25% to 60%
• Fulfillment Cycle Time Improvement from 30% to 50%
• Forecast Accuracy Improvement from 25% to 80%
• Supply Chain Cost Reductions from 24% to 50%
• Overall Productivity Improvement from 10% to 16%
Getting Started on the Road To Effective Supply Chain Integration
To begin your supply chain integration, your Missouri Enterprise Area Business Manager and an experienced Supply Chain Professional will conduct an assessment of your company’s current status, strengths, resources, short and long term needs and will present a detailed project proposal and cost quotation.
Our proposal will address the areas in which you need help, including strategic sourcing, supplier relationship management, managing inventories, transportation and storage for increased profitability or the financial aspects of supply chain management.
And, since we are experienced Lean Enterprise, Six Sigma and Quality Management Systems professionals, we can help you integrate these tools into your overall supply chain management.