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.
