Supply Chain Optimization
Supply chain is happening all around you. If your company somehow makes a product, or procures a product, or procures then makes a product that you then sell to a customer, you have an end-to-end supply chain that might need optimizing.
Are you getting your customers what they want, when they want it—and spending as little money as possible accomplishing that?
Supplier Cost of Goods Sold (COGS) Management
COGS management needs to on self automated and have self optimization mechanism. For instance, if you have changed the oil and rotated the tires at 10,000 miles, that doesn’t mean your car will run smoothly for the next 100,000 miles. And just because you’ve negotiated a low price with your supplier, that doesn’t mean you shouldn’t renegotiate once your suppliers have optimized their own internal production processes.
Supplier Inventory Management
Key to success the profit is having an optimized inventory, but this needs transparency with suppliers. Your own suppliers are doing what they can to supply you what you want when you want it—and accomplish that by spending as little money as possible. But if you and your suppliers aren’t sharing demand information, they run the risk of not carrying enough inventory to meet your needs.
Demand planning is vital within supply chain. To do this, you will need accurate customer forecasting and orders to develop a successful demand plan. This will lead to cost and inventory reduction within your supply chain, ultimately leading to an increase in revenue. In modern manufacturing, demand planning has become much simpler with implementation of integrated systems.
Modern Manufacturers can not reach full potential without integrating an accurate and efficient system. Whether it is an enterprise resource planning system (ERP) or installing advanced planning and scheduling software (APS), gradually witness the improvements in production through systemic accountability and optimization.