Supply
chain involves all the activities that are focused on delivering the products
or services to the customers in a cost-effective manner. It is the network of
resources, activities, people and technology that starts from the sourcing of
raw materials to the delivery of finished products eventually to the end user.
Supply chain management is the process that helps in maximizing customer value
by making the supply chain efficient and cost-effective. It is an integrated
management that keeps a check on the flow of inventory, finance and information
to maintain the supply chain efficiency. This increased transparency enables in
improving the supply chain performance.
Group50, a
leading Supply Chain Consulting firm has managed supply chains of
all sizes ($20M - $4B). Companies need to be effective at designing products,
defining services, forecasting, acquiring materials and resources, purchasing
and delivering those products and services to the customers. They understand in
order to optimize a supply chain, it is important to find the existing
strategic and operating gaps in your company, your vendors and your customers.
Their consultants have designed and implemented optimized supply chains in many
industries as a result of the experience and knowledge of best practices and an
integrated approach to designing and implementing an optimization roadmap.
How
supply chain management can be advantageous for your organization
Improved
product flow
Effective
management of supply chain allows the organization to predict the accurate
market demand and the sales forecasting. This improves the inventory management
and the product flow. The increased transparency and the ability to trace the
movement of goods starting from the supplier to the end user eliminate all the
delays and bottlenecks.
Collaboration
between various businesses
As supply
chain involves the various different interconnected businesses to work together
such as raw materials suppliers and the distributing companies etc. With supply
chain management, the collaboration improves which allows these businesses to
work effectively with one main goal.
Improved
cycle time
The amount
of time taken by the organization in completing any of its entire process is
termed as the cycle time. Through supply chain management, the most effective ways
of carrying out the various operations are revealed which further improves the
cycle time.
Improved
financial flow
With supply
chain management, organizations can evaluate their processes, address all the
cash flow challenges, identify and eliminate all the weaknesses which hampers
financial flow.
Decreased
costs
Supply chain
management helps the organizations to identify the most cost-effective supplier
and distributor channels and in predicting the customers demand. This
significantly lowers the amount of inventory on hand and saves a lot on costs.
For
leveraging all these above mentioned 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.
