Supply chain
management
Supply chain
management deals with all the activities that are involved starting from
sourcing the raw materials till the final product gets manufactured and reaches
the end user. An effective management leads organizations to have proper
coordination with all the stake holders of the supply chain such as suppliers,
third-party service providers and customers etc. With properly managing the
supply chain, companies can provide the right value to the customer at the
right cost.
Group50, a
well-known supply chain consulting firm
has managed supply chain of all sizes from $20M to $4B. They understand that
the companies needs 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. When all the elements involved in supply chain are
optimized, they can result to increased profits, minimal working capital and
shorter lead times.
Supply chain
is the backbone of organizations and till the time it is running well it isn’t
noticed, but when it goes awry, the whole business suffers.
To have a
clear idea about how your company’s supply chain is running, you need to
measure its effectiveness from time to time.
Supply chain
effectiveness assessment
The
effectiveness 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 organization to deliver required business results. It also provides
a gap analysis of the supply chain with a perspective to responsiveness, best
practices, scalability and sustainability.
Both
qualitative and quantitative measures can determine the effectiveness of your
supply chain. Qualitative measures determine the quality of product and
customer satisfaction whereas quantitative measures help determining the
factors such as utilization of resources, response time, lead time, delivery
time etc.
The most
in-depth way to look at the effectiveness of business, manufacturing and
distribution processes is through a Value Stream Mapping. VSM provides a clear
view of how various business processes are related to each other, assesses the
need for those processes and how efficient they really are. During Value Steam
Mapping, a model is created which shows how much time, effort and cost is
required for a specific process. It is applicable to small functional
processes, manufacturing processes such as building a product and complex
horizontal processes such as order entry to cash or understanding the
interdependencies of a global supply chain.
Objectives of
supply chain effectiveness assessment
·
Identify all components of the supply chain from raw material
providers to the end user and determine how they align with your company’s
strategy
·
Assess the performance requirements of your supply chain to meet your
products and services need in the marketplace
·
Determine the gaps between existing processes, organizational
structure and skills, systems and those required to deliver the company’s
strategic objectives
·
Review the effectiveness of supply chain accountability measures and
compensation
·
Complete a gap analysis of your supply chain accountability vs. best
in class organizations
·
Deliver a final report that identifies the key opportunities and the
expected ROI’s
In order to
carry out effectiveness assessment of your supply chain, you can contact a
leading supply chain consulting company
like Group50. Their supply chain subject matter experts can provide an
assessment of what is working and what requires attention within your supply
chain. This assessment will also provide a set of short-medium-long term
recommendations on where to focus your attention for optimized performance from
the perspective of cost and responsiveness.
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