Be Effective at Manufacturing Products and Delivering Value to the Customers with Supply Chain Optimization

The supply chain is a complex mix of activities that is focused on cost effectively delivering product or services. Supply chain management deals with all the activities starting from the procurement of the raw material to the manufacturing and delivering of the finished products to the end users. Supply chain management strategies are redefining the ways for organizations on how they should manage their supply chains. It enables the businesses to cope up with the changing demands and keeping pace with the global markets. It would not be wrong to say that supply chain management is an integral part of the customer satisfaction and the entire company’s success. With this, the main objective is to deliver optimum value to the customers at the least cost and with quality intact. 

Group50, a well-known supplychain consulting firm has managed supply chains of all sizes ranging from $20M to $4B.  They understand that 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. Their consultants help companies to do it with lower cost year in and year out.

Organizations can effectively manage their supply chains by gaining optimization which is   achieved by focusing on various elements. All of these elements can help drive increased profits, minimal working capital and shorter lead times. These key elements include:

Upstream and Downstream

Any sort of raw materials or the finished part of the products that are procured by the company falls under the upstream part of the supply chain. Simply put, anything that comes in the company in the form of materials is termed as upstream. Contrary to this, anything that goes out of the company such as any service or finished product delivered to the customer comes under the downstream part of the supply chain. 

Inventory

Inventory is the representation of the major source of revenue for the company. It includes everything from raw materials to work in progress goods and finished products. Supply chain management involves policies, strategies and systems to keep the inventory control and also the utilization of that inventory to the maximum level.  

Logistics

Logistics is the backbone on which a supply chain operates and it involves everything such as movement, storage, flow of goods and information. In order to have an optimized supply chain, businesses need to understand the importance of effectively organized logistics. It is extremely vital for meeting the market demands and having a competitive edge over the competitors.  

Cash-flow

All the decisions; major or simple regarding the supply chain can affect the cash flow. Cash flow in an effective manner is crucial for companies of all sizes and to keep them in business. With having an optimized supply chain, companies can prevent some failures to an extent. Optimization can also alleviate these cash crisis to maintain stability within a company.

Value

Value in the supply chain basically refers to the delivery of the finished goods to the end users. The products should be worth the customer’s money and must offer them great value while maintaining cost effectiveness. The end users are seen as the source of generating value thereby striking a balance between what the consumers want and what the company manufactures. The product or service offered by a company must be considered as value by the customers.

Distribution

Effective and efficient distribution system is vital for supply chain management. Distribution system comprises of a chain of intermediaries through which a product or service passes until it reaches the end user. Wholesalers, retailers and distributors and even internet are part of this distribution channel.

Group50’s supply chain management 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. They will work with the senior leadership team to develop an optimization roadmap and implement a continuous improvement program that will generate 5-10% cost improvements, reduced working capital requirements and reduced lead times year over year.

Talk to an expert at Group50 to find out more about their supply chain optimization program.

Blockchain Technology comes up as a Game Changer for supply chain industry

Have you ever thought about where all products come from in the supermarket? Or the clothes you are wearing and mobile phones that become an essential need in our life? Think about where all raw materials came from, how it transported to the production plant, how it created and got packed and ended up delivering in the shop for buying. All these things are directly connected with the chain called the supply chain.   

What is Supply Chain Management?

Supply Chain Management is defined as integrated planning and execution of different processes within the supply chain. For example, if we talk about the supply chain management of clothing industry then it is connected to:-

• Raw material sources
• Factories use these raw materials for creating final products

• Distribution network from where consumers get these clothes

In short, supply chain management includes all the activities from the flow of goods, services, and information related to storage and movement of raw materials, creating products and full-fledged finished goods from one point to another.

Why we need supply chain management?

If the supply chain is properly implemented then it will provide various benefits in terms of increasing sales, reduce overhead costs, improve quality, reduce cost and complex manufacturing process, etc. But, unfortunately, the supply chain becomes very convoluted and inefficient.

Supply Chain challenges and Blockchain solutions 

A supply chain is currently troubling with various challenges in managing record-keeping, tracking products; lack of transparency, etc. that impact its efficiency. The introduction of blockchain in supply chain management can improve its performance by providing a secure and transparent way of tracking all transactions across the supply chain. The introduction of blockchain can improve the various tasks of the supply chain.

• Record the quantity and transfer of assets efficiently such as containers, pallets, etc. that move from one point to another in the supply chain nodes.
• Tracking of a purchase order, change orders, trade-related documentation, shipment, etc.
• Assign or verify the properties and conditions of physical products. Like determine the food product is an organic or fair trade
• Link physical goods with their serial numbers, digital tags, etc.
• Share information regarding the manufacturing process, delivery, maintenance of products. 

Key Benefits of Blockchain Supply Chain

The blockchain offers various benefits to all the participants of the supply chain by eliminating all key obstacles. Some of the benefits include:-

• Enhance transparency- Blockchain records all the data of product journey across the supply chain that reveals its true origin and touchpoints. This will increase the trust and help in eliminating the bias that is found in supply chain management. Manufacturers can share these logs with OEM’s and regulators to reduce recalls.

• Security: - The blockchain is a distributed shared ledger where all the data can store and eliminates the audit required by internal systems and processes. As the data cannot be edited or deleted once it is inserted so it assures complete security of data.

The other benefits of adopting blockchain in supply chain industry include:-

• Eliminate or minimize the frauds and errors
• Improve inventory management
• Find issues quickly
• Increase customers and partner trust
• Reduce courier costs
• Reduce delay from paperwork

Group50 for Supply chain blockchain consulting

Group50 is one of the trusted names that have extensive experience in providing Blockchain Consulting & Solutions and grabbed huge applause from their clients for their consulting services. They are backed by the team of supply chain blockchain experts that can help your business by optimizing supply chain management with the implementing blockchain technology. If you are looking for Supply chain blockchain consulting services from experts to boost your business then contact Group50 professional today. 

Supply Chain Consulting to Make Your Organization Adjust Dynamically to New Markets and Changing Economies

The supply chain is a complex mix of activities that is focused on cost effectively delivering products and services. Supply chain management is all about the management of processes such as planning, operations, logistics and sourcing. It involves applying different approaches for the effective management of goods starting from the raw material supplier till they reach to the end user as value.   

Group50, a leading Supply Chain Consulting Company has managed supply chains of all sizes from $20M to $4B. They understand that 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 it with lower cost year in and year out with supply chain optimization. Their consultants provide strategic sourcing services and 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.

Global markets are expanding their reach and re-defining the ways how supply chains need to be managed. Effective supply chain management is like critical backbone for the success of organizations. With it, companies become competent in responding quickly to the changes and making most out of the emerging opportunities.

Supply chain management leads your organization towards the road of various new opportunities such as:  

Improved cycle time and increased efficiency

Cycle time refers to the duration of time taken by the business in completing an entire process. Through supply chain management, the most effective ways of carrying out the various operations are revealed which further improves the cycle time. When organizations become competent at integrating supply chain and logistics, they are in a great position to not only predict the demand but also respond accordingly. It is one of the greatest advantages of optimized supply chains that companies can adjust dynamically to the new markets, shorter product life cycles and changing economies.

Decreases costs and improved financial flow

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. Moreover, 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.

Improved customer service

By investing in supply chain management, organizations can easily manage the logistics. They can track their shipments, materials and products. With improved supply chain technology, it has become easier to deliver the products to the customers.

For reaping all these benefits, consult Group50 to carry out an effective Supply Chain Optimization program for your business. The first step they will take is to understand how well your supply chain is doing through their Supply Chain Effectiveness Assessment. From there, the Supply Chain Consultants will work with the senior leadership team to develop an optimization roadmap and implement a continuous improvement program that will generate 5-10% cost improvements, reduced working capital and reduced lead times year over year.