The supply
chain is a complex mix of activities that is focused on cost-effectively
delivering products or services. It can be associated to any manufacturing
company that is in business to provide a product or services to its customers. All
the activities included in delivering the quality product from the time of raw
material extraction till the time the product reaches in the customer’s hands
come under supply chain management.
The motive
behind effective supply chain management is manufacturing and delivering the product
better, faster and cheaper. It is an effort towards making the supply chain effective
and efficient.
Group50, a
renowned firm provides supply chainmanagement consulting
and have managed supply chain of all sizes from $20M to $4B. Companies need to
be effective at designing products, defining services, forecasting, acquiring
materials and resources, purchasing, and delivering those products and services
to their customers. And, they need to do this by optimizing their supply
chains. To understand how well their supply chain is doing is through supply
chain effectiveness assessment.
Supply Chain Effectiveness Assessment
This
assessment examines how effective your company’s supply chain is in acquiring
materials, moving them through your required value added processes and
delivering them to your customers. It looks at the ability of the current
systems and provides a gap analysis of the supply chain with a perspective to responsiveness,
best practices, scalability and sustainability.
How Supply Chain Management Benefits
Your Organization
Greater efficiency
It
incorporates various aspects of business such as logistics, product innovation
methods, production, demand forecasting etc. This lands the organizations in a
position where they can predict demand and make their moves in that direction. Greater
efficiency helps in delivering the product to the customers at a faster pace.
Lowers costs
One of the
main advantages of supply chain management is that it lowers the total supply
chain cost. All the costs related to materials procuring, inventory,
transportation and others are reduced significantly thereby increasing the
organization’s profitability.
Enhances collaboration with vendors
and suppliers
There is an
interconnection of various businesses in a supply chain that work with one main
objective to provide value to the customers. Effective supply chain management
allows you to evaluate supplier relationships and accordingly, you can take
decisions like choosing the supplier for raw materials and also the distributors.
Based on this transparent view and the customers’ demands, you can utilize the
service of different suppliers and distributors that fit best.
Improves financial flow
With supply
chain management, organizations can evaluate their processes, address all the cash
flow challenges, identify and eliminate all the weaknesses which hamper
financial flow.
To take
advantage of all the above-mentioned points, contact a reputed supply chain consulting company like
Group50. They will work with the senior leadership team to develop a supply
chain management roadmap that can generate 5-10% cost improvements, reduced
working capital requirements and reduced lead times year over year.
