Key Drivers of Supply Chain Management that Help Tackle Market Uncertainties

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.  

How supply chain consulting firm can benefit your business?

Business owners are always looking for different ways to ensure the smooth running of their operation work. One of the best methods of improving efficiency is to ensure the availability of your products with demand. Many companies approach supply chain consulting company that can help them in reducing the cost and maximize the profit.

Keep up with the demand may sound very simple work but it is actually very complex when your sales unexpectedly rise. If this problem runs for a long time then it can lead to a negative effect on both the present and future of the business. Mostly owners are good at products but they don’t have expertise in managing their operations. In this scenario, hiring a supply chain consulting firm can work as a bridge to fill the gaps and ensure that company is operating at peak efficiency.

Reasons for hiring the supply chain management consulting company 

Here, we are listing a few reasons to show how consulting services can help in resolving your supply chain issues:-

1.      Baseline 

The supply chain consulting firm plays well in improvement initiatives and efforts for resolving the key issues related to large quantities of accurate past, current, and future projection data. The supply chain management consults digs out all information and presents it in a usable data. Moreover, they can accomplish the work in less time as compared to the internal team.

2.      Problem-solving

It is difficult for internal resources to identify and solve complex supply chain problems alone. A supply chain management consulting company experts will examine your supply chain to find the accurate problem and provide effective solutions. 

3.      Suggest the solution 

After identifying the problem, you may have different possible solutions for it. A management consulting firm will evaluate all the solutions and make an objective recommendation to provide the most cost-effective option.  

4.      Support in implementation

In most cases, management consulting will help you by providing recommendations for supply chain implementation and solutions for specific issues. In this way, you can get assistance from consultants through implementation, especially for complex projects.

Apart from it, there are other common reasons to hire supply chain management company like:-

• To act as an alternative for permanent internal resources
• To provide internal learning
• To share new ideas, best practice and methodologies into supply chain organization

Benefits of hiring supply chain management consulting

Many leading companies use supply chain management consulting services due to its various advantages such as:-

·         Objective: - The professional consultant offers an independent and fresh point of view which is free from any internal influences like politics and culture

·         Focus: - Company managers are responsible for managing the entire spectrum of the company for different roles. Management consultants are focused and have one obligation to resolve their client problems. 

·         These external experts are responsible to maintain their focus on the issues and resolve them.

·         Extensive experience: - The Company may have experienced a given issue once. Supply chain management consultants are experienced in dealing with the same issue many times in different organizations. It means they are equipped with more tools to experience and know-how to navigate the issues and their potential solutions.

·         Skills:- Apart from their expertise in the supply chain, they are also skilled in managing the projects to be executed successfully. These skills are change management, communication, project management, and leadership.

Group 50- to get Supply Chain Management Solutions

If you are also looking for Supply Chain Consulting Company to grow your business then you can approach the Group50 experts. It is one of the leading consulting companies which have extensive experience in managing supply chains of all sizes and use the same methodologies for assessing effectiveness.

The company has founded in 2004 and provides consulting practices in three areas including business strategy, talent strategy, and operational execution. They have a team of subject matter experts in manufacturing, distribution, and supply chain. The company provides its services to a wide range of industries and clients.

Supply Chain Consulting to Bring Insights for Achieving Continued Success

The current business environment and its economic situation that the businesses are dealing with, it have become imperative for businesses to become cost-effective. No matter how big or small the organization is, having an efficient and properly managed supply chain is vital for achieving continued success. As we all know that the supply chain is a complex mix of activities that is focused on cost effectively delivering products or services to the customers.

If a company’s supply chain isn’t working well and everything goes awry, the company tends to lose a huge amount of money and resources in many areas. Even if a company is running its supply chain successfully still proper and continued management is required for achieving stability in this ever changing market environment. 

In order to have complete understanding of your processes and how efficient and effective they are, it is a wise decision for business owners to reach out to the supply chain management consultants. 

Group50, a leading supply chain consulting company has managed supply chain of all sizes ($20M to $4B).  They use competent methodologies for accessing the effectiveness of their client’s supply chain. Their consultants 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 this with lower cost year in and year out. Supply chain optimization can be achieved by focusing on the various key elements such as upstream, downstream, cash flow, inventory, information, logistics, distribution and value. Optimization occurs when all these above mentioned elements are driving increased profits, minimal working capital and shorter lead times.

In what ways supply chain consulting proves beneficial for your organization?

Supply chain consultants ensure that your organization’s supply chain is constantly analyzed and the best tools and resources are applied to make it run in the most efficient manner. They help integrate new ideas and practices. They bring an outside perspective to every core aspect of your supply chain such as from manufacturing to production plant, logistics to shipping centers and cash flow to resource management and so on.

Through a detailed analysis and observations noted, they may carry out and implement some significant changes to make the supply chain more efficient and cost-effective. From retooling the manufacturing plant or suggesting involving third party providers in some areas such as packaging or shipping, these supply chain consultants can suggest many changes. These consultants understand that supply chain is the backbone of any company how big or small scale. If it is not operating well, it will generate huge loss over time even in times and situations when it could easily thrive and deliver optimum outcomes. Simply put, supply chain consulting can bring significant insights to make your supply chain run at the highest efficiency.

You can take the services of Group50, a renowned supply chain consulting firm.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.  

  

      

Maximize the benefits by hiring trusted supply chain consulting services

The supply chain includes a complex mixture of activities that completely focused on delivering cost-effective products and services. There are a number of people associated with the supply chain management process from manufacturing to its distribution. But, in this high competition where the marketplace is highly volatile and powered by digitally empowered consumers, it is important that your supply chain should efficiently work to maintain customer satisfaction and adapt the changing volumes for its efficient operation. You should have the ability to act quickly when fluctuation created in customer demand and supply network without impacting the services.

 By using the right system and strategies, your organization can efficiently work in managing every order from any source at any time. You should hire trusted supplychain consulting company to reap the best from your supply chain management and make it less complex by working on the following strategies.

• You should be clean with the key issues and goals of the business. Once you identify the challenges of your supply chain, match them with your business goals to identify where you are lacking and what you should include in your selection process.
• Next, you need to organize the selection process and set criteria. You can consider the supply chain consulting firm to work on your business needs and recommend how to work in critical areas that help to improve your supply chain.
• Call for a cross-functional team. Try to involve those members who are beyond the IT department for evaluating solutions and partners. It includes internal experts from customer service, distribution, logistics, and executive management.
• When you hire any consulting partner review their customer portfolio to know which industries they serve? Will they understand your business needs? All these things help in saving your time and money.
• Evaluate the vision of a Supply Chain Consulting Firm. Do they provide your long-term strategic plan? You should hire the one who keeps updated with the latest trend in the market.
• You should know how your partner will bring the best from your previous technology investment. They should help you in creating a smooth business process for your enterprise with systems.
• The solution should be properly aligned with your business. The modification will cost you very expensive therefore you should choose a partner that can offer you a suitable solution as per your business process. 

Group50- to get professional supply chain management consulting services

At Group50, they have a team of expert supply chain consultants who have managed supply chains for all sizes of business and using the same methodologies for accessing effective results. Companies required effectiveness in designing products, acquiring materials and resources, defining services, purchasing, and delivering products and services to the customers. All this should be done at low cost and at the end of year supply chain optimization should be achieved by focusing on these elements:-

• Upstream
• Downstream
• Cash flow
• Distribution
• Value
• Logistics
• Inventory 
• Information

Optimization will finally occur when all the above-listed elements are driving increased profit, minimize working capital and short lead times. Group50 experts will intertwine all the elements and plan to create an optimized supply chain driven by:-

• Strategic Objectives
• Business Life Cycle
• Market Value Drivers
• Vendor Participation and Commitments
• Key Performance Indicators
• Total Cost of Ownership
• Quality
• Strategic Sourcing
• Distribution Cost and Effectiveness

By considering all these indicators, they have implemented different projects. Some are listed below:-

• Supply chain modeling
• Purchasing
• Sales, inventory and operational planning
• Technology optimization
• Changes in technology
• Product rationalization
• Cost reduction programs
• Logistics optimization and more

When it comes to supply chain optimization, it is important to understand the existing strategic and operating gaps in your company, your vendors, and your customers. Group50 supply chain experts have expertise in this domain and provide strategic sourcing services to optimize the supply chain of different industries. By leveraging their experience and knowledge they integrate the best designing and implementation for your organization roadmap.

Arrive at the Right Decisions Systematically with Digital Supply Chain Technology

Digital supply chain is built completely on the smart systems that help the organizations save time, money and resources. It is supported by an array of disruptive technologies such as Internet of Things (IoT), Blockchain, Cloud Computing, Artificial Intelligence, Industry 4.9 among others. 

The digital supply chain is complex because of the number of components that make it up.  Companies that are focusing on effective digital supply chain management need an infrastructure, software systems and components that are both scalable and sustainable.   

Digital supply chain technology

Digital supply chain technology is experiencing a high rate of change as new systems are created, updated and integrated. The challenge for supply chain and digital technology professionals is how to choose and implement the right set of technologies for their company’s strategic needs. It is necessary to develop a building block approach that is designed to scale with the company’s growth and be flexible enough to easily accept new systems and technology as they present themselves.  

Elements of a digital supply chain

·         Core business support servicing the company’s basic business needs

·         Production/Services management focused on the key products and services the company offers to its customers

·         Customer focused service systems that are required in today’s marketplace

·         Supply Demand Management providing the marketplace with products and services close to demand

·         Inter-Organizational Collaboration are the systems that collect and access data for decision making, provenance, chain of custody, etc.

It takes significant amounts of time and investment to do a complete implementation and most companies don’t need the entire structure at the outset, but as they grow, more of these components are needed.

Group50, a leading supply chain consulting firm have supply chain and digital technology subject matter experts who focus on leveraging digital supply chain assets at the intersection of people, process and technology. They take a holistic approach to optimizing digital supply chains which includes the integration of systems that are operated by customers, consumers, the company, logistics companies and suppliers as well as the strategic needs of the business.    

Benefits of a digitized supply chain

Creates a connection between multiple data sources

With digital technologies such as IoT and Blockchain becoming so prevalent it has become an essential aspect of modern and successful supply chain. It enables to connect the devices that are used to deliver data across various processes and channels within an organization. Such connected system helps in improving processes and helps in improving the overall product quality.

Makes your organization more agile and future driven

Digitalization in supply chain is cross functional, which helps in predicting the customers demand, planning priorities and then executing the processes to meet the customers’ demand. Also, it enables in achieving the strategic objectives of the company such as new markets, development of new products and acquisitions and much more.

Cost management and cash flow

Digitalization of supply chain leaves a major impact on the cost management and improved cash flow. This is all possible because the faster the supply chain and its operations moves; the less capital gets tied up in the supply chain which further results to better cost management. 

For the digitalization of your supply chain and leveraging all these benefits, consult a renowned supply chain consulting company like Group50.  Their digital technology assessments and workshops help you systematically arrive at the right decisions and implementation roadmaps. They put together the right mix of seasoned IT professionals, business process owners and vendors to understand the current state, develop a roadmap to the future state and support its’ implementation.    

Supply Chain Effectiveness Assessment to Determine the Performance Requirements of Your Supply Chain

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.    

   

  

  

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.