Supply chain is a network of factories,
suppliers, logistics, warehouses, distribution centers and retailers. Through
this entire process; the raw materials are acquired, transformed, manufactured
and deliver to the end user. It is dynamic process that has multiple functional
areas where each chain member requires the constant flow of information,
materials and cash for the proper working of supply chain. The main objective
behind effecting managing a supply chain is the delivery of final product to
the customer at cost-effective price.
Every stakeholder in the supply chain needs to
cooperate with their partners in order to maximize the profit by meeting the
customers’ needs. Managing collaboration isn’t easy as each party has its own
objectives and resources. Supply chain management is all about bringing the
required cooperation and understanding among all the stakeholders. It enables
in bringing real-time cooperation and quick decision making across multiple
level to tackle uncertainties. It is a powerful tool which enhances
responsiveness towards the ever-changing market conditions thereby increasing
the competitiveness of the organization. Through this, the right product at the
right place and at the right time can be delivered.
Supply
chain management solutions
Most of the companies are focusing on supply
chain management in order to reduce cost and to leverage new innovative
strategy. Group50, a leading supplychain consulting firm has managed supply chains of all sizes from $20M to
$4B. They use a unique set of methodologies. These consultants understand
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. And they need to do it with lower cost
year in and year out. Supply chain optimization is achieved by focusing on the
various key elements such as downstream, upstream, cash flow, inventory, information,
logistics, distribution and value. Optimization occurs when all these elements
are driving increased profits, minimal working capital and shorter lead times.
Key drivers
for supply chain management
Globalization
All the external forces such as local
competition, legal changes in policies and regulations, pressure from other
competitors affects an organization’s ability to meet the market demand. Due to
this, businesses face a lot of challenges in facing the customers’ requirement
at a global level. Globalization of supply chains has eliminated the product
barriers which have forced companies to adapt to the new change policy.
Effective supply chain management has enabled them to bring a constant change
in their strategies.
Sustainability
Achieving sustainability across all the aspects
of supply chain has also become a major concern for companies. It has become a
key driver for supply chain management in order to have compliance with legal
regulations, social-economic impact, international policies and much more.
Technology
With so many technological developments over the
years, customers have become more driven towards technological oriented aspects
such as online shopping, online payment, online shipping, online access to
information, online status of product, online virtual chatting and so on. This
has forced companies to update their processes with changing technology. It has
not only helped companies in effectively meeting the customers demand but also
resulted in increased revenue.
You can take the services of Group50,
a renowned supply chain consulting company.
Firstly, they will understand how well your supply chain is doing through their
Supply Chain Effectiveness Assessment or their Distribution Assessment. From
there, their subject matter experts 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.
You can find out more about their Supply
Chain Optimization program by talking to an expert at Group50.
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