Supply Chain Management
A common process need in almost any business is Supply Chain Management (SCM). Supply Chain Management deals with the planning and control of all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. In order to make SCM work as it should requires the establishment of information systems and materials management disciplines that plan and manage the details of all materials planning, purchasing, inventory control and materials movements and storage, which are practices that are often challenges for a business. Our expertise is in identifying the process and discipline problems that exist and helping companies implement the necessary improvements to have a world class Supply Chain Management system. Here are the main areas we review as we consider areas of improvements in the overall Supply Chain Management process.
- Supply Chain Management Systems- Supply Chain Management deals with the planning and control of all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. In essence, Supply Chain Management directly manages those processes and disciplines that design, plan, execute, control, and monitor all Supply Chain activities with the objective of maximizing net value for the company, leveraging worldwide logistics, synchronizing supply with demand, and executing with world class performance. Any performance not meeting these standards signals an opportunity.
- Materials Management Systems – These processes, in support of optimum Supply Chain Management performance, encompass the creation and management of the different information systems and control disciplines needed to optimize the use of materials and production resources in an organization. It includes the following types of programs:
- ERP Implementation/Reimplementation Programs – Establishes and implements the optimum information systems settings and user disciplines to support the revenue generating and Supply Chain Management processes of a business.
- Creation of High Level Materials Management Disciplines – This effort creates a variety of higher-level materials management processes and disciplines that include Master Scheduling, buyer/planner capabilities, proactive supplier managers as well as cycle counting disciplines.
- Kanban Inventory Management Systems – Implements the unique inventory management process used in the JIT and Lean Manufacturing approaches into appropriate areas of the Supply Chain Management system.
- JIT/ERP Hybrid Materials Management Systems – Takes the best features of both materials management concepts and creates a system that provides both minimum inventory and quick response with the visible controls and forward planning capabilities of an MRP/ERP system.
- Order Fulfillment Systems – Develops the order processing, product pulling, and shipping processes. These programs take on a variety of efforts ranging from warehouse layout and racking design to development of sequential picking processes, order pulling and restocking processes, plus optimum equipment to be used. In addition, further efforts can include the development and justification of automated systems to facilitate product storage and transfer within the warehouse.
- Design for Manufacture – Creates design flexibility using modular concepts. These designs allow product flexibility up to the last final assembly operation, increasing the flexibility of assemblies and components that are onhand. In addition, due to creating a flow environment on the major components, it also reduces the replenishment time on these major components in the entire supply chain.
- Purchasing Value Enhancement Programs – Partners purchasing processes and suppliers to work on ways to reduce purchasing costs and improve cash generation.
- Purchasing Cost Reduction Programs – Through improved planning visibility and supplier partnering, creates opportunities for cost reductions of materials, components, outsourced manufacturing, and freight and logistics. Also includes negotiations to improve cash generation with more favorable terms.
- Kanban Inventory Management Systems – Implements kanban capabilities in vendor supply chain that can include use of supplier-filled kanbans as well as consignment inventory in kanbans.
- Joint Value Engineering Programs – Supports partnering with key component suppliers to design cost out of items while improving manufacturability, performance and quality of products and services.
Contact us to discuss how to create a world class Supply Chain Management system.