Utilizing supply chain management for improving your organization’s bottom line

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.