You need to streamline your supply chain management. How can you do it without breaking the bank?

During the assessment phase, aim to identify your Supply Chain's bottlenecks. Keep in mind that streamlining a process doesn't necessarily translate to global progress. Addressing the choke points by order of priority elevates throughput and global performance, whereas enhancing other areas creates potential.

Optimizing supply chain without breaking the bank involves strategic steps. Implement cost-effective technologies like RFID for efficient inventory tracking. Leverage cloud-based solutions for real-time visibility and collaboration. Negotiate with suppliers for bulk discounts, enhancing cost-efficiency. Embrace lean practices to minimize waste and enhance agility. Continuous process evaluation ensures ongoing improvements. By combining technology, negotiation skills, and lean principles, a streamlined and cost-effective supply chain is achievable. #SupplyChainOptimization #CostEffectiveSolutions #BusinessEfficiency

Basics first: set your GPS right. Get deep understanding of your strategy. Draw a picture of where do you want to go, what is your aspiration, visualize success. Build a model. Then precisely define where you are. Assess your current abilities, constraints, how you deliver value. Base it on your data and best knowledge in your organization. If you miss the data, try data mining. KYP.ai will do a big portion of it for you, including automation potential identification. You now have your start and finish points so time to draw a route. Identify programs, projects, initiatives that will take you there. Use effort/effect matrix. Be ready to adjust the route as you go. Before you hit the 5th gear, start with 1st, then 2nd. Go slow to go fast!

When you access your current state it is important you benchmark against competitors using a comprehensive set of SCM KPIs. The one I like the most is Reliability of Supply , it shows how effectively your company deliver on time. Actually, at present some customers prefer to pay , in separate, for having products delivered safely and faster, and sellers to immediately compensate customers for non compliance on deliveries.

One idea: Offer a meaningful incentive (reward, recognition, discounts, etc) to stakeholders in the supply chain who identify opportunities to streamline and improve. The closer someone is to the work or its effects, the more insightful their observations will be. Fruitful ideas can come from unexpected sources.

As the name implies: Trim the excess. First, recognize that the entirety of a supply chain can not be optimized. Why? - Tradeoffs. In any complex system, increasing one variable, will decrease another to restore equilibrium (a concept taken from chemistry). So define your objectives first, then identify your tradeoffs, and optimize 20% of the levers in your system that impact 80% of your objective. Then standardize the remaining leavers that contribute to the 90-95% impact level. And finally, trim the areas that only contribute 5% to your objective. You will find that most of what you are trying to control costs you more than you profit from.

Implementing Lean principles in supply chain management involves streamlining processes, reducing waste, and enhancing efficiency to deliver value to customers while minimizing costs. Steps include value stream mapping, eliminating waste, adopting just-in-time inventory, fostering supplier collaboration, and promoting continuous improvement. Standardized work, pull systems, cross-training, and quality management are essential. Organizational Cultural Change is crucial for sustainable Lean system implementation. Therefore, the Change Management approach should be incorporated into the solution approach.

My answer is automation - and it’s no longer expensive and has also been around for some time. Look for low hanging fruit that get you 1-2% to start and incrementally improve from there.

Defining policies and procedures within an organisation is a starting point to use supply chain practices effectively. You cannot have just in time implemented until you have accurate data of orders to be shipped or fulfilled, requests to be processed. Implementing lean principles also depends on the volume of the transactions you perform on a daily basis and how you prioritise the same. If you ignore the forecast, and wish to have a pull system, you need to know which order to be processed first.

Adopt Just-In-Time (JIT) inventory practices. This means producing and stocking items only as needed, reducing inventory costs and waste. JIT demands a reliable forecast and responsive suppliers but significantly cuts down. Embrace continuous improvement (Kaizen). Encourage employees at all levels to contribute ideas for process optimization. Small, incremental changes can lead to substantial long-term efficiencies and cost savings. Invest in cross-training employees. Versatile workers can adapt to multiple roles, ensuring smoother operations during demand fluctuations or staff shortages. Collaborate closely with suppliers and customers. Building strong relationships ensures better communication. These principles are the key.

Many operations spend 80% of their purchasing dollar on a small number of large orders for production. But 80% of their purchasing effort goes into the 20% spend on parts and materials to keep the operation running. The technologies available (AI, ML) depend on data - good data. That's usually lacking in maintenance (for reasons out of the control of supply chain), so you can't rely on those tools for accuracy - GIGO. Integrating your maintenance work planning and scheduling with stores and inventory management is seldom considered and dealt with, yet it is sorely needed. Now that provides an opportunity to makes some substantial savings in downtime reduction, while optimizing spares holdings to achieve tolerable risk levels.

Banks can help B's and S's develop a holistic understanding of the SC , thus improving integration and optimising WC. There are 3 dimensions of SC integration("I") : customer I ,supplier I & internal I ,which refers 2 the extent to which a manufacturer integrates its organisational strategies & practices into collaborative, synchronized processes, in order to ful?l client's requirements. The ?nancial information in the SC runs parallel to the physical movement of goods, representing all transactions that occur in relation to that movement. The fact that the information ?ows at a different rate than the good is important, as gaps separating physical SC activities from their associated ?nancial information,continue to frustrate companies.

Be careful when automating your SCM not to start throwing technology everywhere. Although it can look sexy and world-saver, bad technology can cost you a lot. Why? 1- Automation, most of the time, aims to reduce or eliminate FTEs, which means that if you don't have the proper process happening, you will get faster to the wrong place! 2- Data… automating will allow you to capture so much data! But it doesn't turn into value on its own. You need to have the business questions you want to solve beforehand, or you must dig the gold in the middle of the noise. 3- Sunk costs. If you apply tech to solve something that is not a problem or is an overreaction, you may sink into an inefficient investment.

Automation is key. Its cost dropped dramatically with the rise of AI. You will not believe how much easier it became to work with big sources of data. With AI you don’t need to structure the data in SQL database. You just need to mark the source and set the rules. This is unfair advantage of those who knows how to use it for automation and integration. This is the future.

Implementing technologies like RFID for real-time tracking, adopting data analytics for demand forecasting, and fostering collaboration with suppliers can help streamline supply chain management cost-effectively.

Given a 2021 McKinsey study, RFID has the power to unlock 5% top-line growth from better stock-out management & shrinkage reduction, as well as reducing?inventory-related labor hours

Ensure alignment between the cross-functional teams. Many times moving things forward requires facilitating the prioritization and follow-up of action items. Simple task that is frequently overlooked.

Los conceptos de Colaboración y Comunicación requieren de múltiples aspectos para ser eficaces. Entre ellos, procesos claros y formalizados, creados, revisados y aceptados por todos como la forma actual de trabajo, sistemas que faciliten la colaboración, con interoperabilidad, trazabilidad, acceso universal, entre otros y mensajes claros y definidos, desde los objetivos estratégicos y el propósito compartido de todos los participantes. Sin estos aspectos, no puede existir colaboración ni comunicación que permita que las cosas pasen, y pasen como se desea. Eso incluye a los propios trabajadores, como los distintos stakeholders involucrados en los procesos y sus resultados.

In a production / operational environment there is a customer that is often overlooked - your own maintainers! Don't miss them - they keep the plant running using the materials and spares you acquire for them.

las nuevas tecnologías han facilitado enormemente una tendencia que ya se venía intuyendo en los últimos tiempos: la colaboración en la cadena de suministro. Proveedores, fabricantes y distribuidores deben trabajar juntos para mejorar su rendimiento común y particular, porque la competitividad del mercado les obliga a ello si no quieren perder negocio. No se debe olvidar que para que esta estrategia sea efectiva, es necesario que cada uno de los actores de la cadena la aplique y sea consciente de su importancia.

Focus on data-driven decision-making. Utilizing data analytics to understand consumer trends, optimize routes, and manage inventory can lead to smarter, cost-effective decisions. Adapt to a more agile supply chain model. This means being ready to respond quickly to market changes, demand fluctuations, and supply disruptions. Building a versatile supplier network can help mitigate risks and reduce dependency on single sources.

Think outside the box. Effective SCM should always consider 'demand influencing'. Consider steps that can be taken to steer customer demand in a direction that aligns with your SCM interests, resulting in cost efficiencies which can even translate to better pricing for the customers.

Strategy Execution's 4 Levers of Control model, including Interactive Controls, enhance supply chain flexibility and responsiveness. These levers guide decision-making and behavior, ensuring strategies align with business goals while remaining adaptable to change. Interactive Controls specifically foster innovation and agility, enabling organizations to swiftly respond to market shifts, customer demands, and competitive pressures. This approach ensures the supply chain is not just efficient but also poised for growth and able to maintain a competitive edge, balancing strategic execution with the ability to adapt to evolving business landscapes.

From the perspective of Legal and Compliance departments, it's crucial that innovative approaches in Supply Chain Management (SCM) not only align with market demands but also comply with legal requirements. When employing design thinking and agile methodologies, it's important to incorporate legal and ethical considerations into the solution process to avoid risks such as liability issues or data privacy breaches. Additionally, companies must ensure that their Circular Supply Chain practices are in line with regulatory requirements, especially concerning waste disposal, environmental protection, and product responsibility.

Como el ciclo de la mejora continua, la innovación es un proceso permanente, pues hay que adaptarse. Justamente los negocios más rentables están donde es más complejo atender. La mayoría tiende a su círculo de confort, a llegar a donde te sirve ahora, pero ahora no es ma?ana. Por otro lado coincido, adaptarse también pasa por ser reactivo en lo proactivo, esto es adaptarse a los problemas que se vienen, o liderar el cambio. Cuando se tiene una cultura positiva hacia el cambio, este punto es sencillo en una organización que entiende que debe mirar continuamente cómo optimizar su SCM.

To streamline the supply chain in more sustainable manner requires focus on three aspects - 1. Process alignment : End to end supply chain alignment i.e. demand planning, souring/manufacturing planning, inventory distribution to customer order delivery to ensure integrated planning & execution to meet SC KPI's. 2. Cloud based SaaS platform : For seamless planning decisions & data flow integration across planning functions, end to end visibility and capability to track plan v/s actual deviation and quickly realign plan to meet deviations. 3. S&OP process governance : To bring cross functional alignment with common objective and drive right trade off decision to steer supply chain as per organization priorities and business dynamics.

Focus of optimising the current the current process, leverage communication and technology for efficiency and collaboration, regularly review and customise strategies for daily improvement. Also explore cost-effective software solutions and gradually scale up based on the evolving needs of your supply chain.

Discriminate between SUPPLY management and SUPPLIER management. How to? If you are in the manufacturing space, spend time to map your full, end-to-end supply chain, including your higher tier suppliers, their distribution points, logistics paths, etc - for a few strategically chosen products. By doing so, you can visualize the critical bottlenecks in your full chain - and devise the right countermeasures. These could be: - changes to your company's inventory policies - building supplier capabilities - improving the quality of your demand signal - deepening supplier relationship - diversifying your supply base - changes to supplier payment terms These will lift your long-term supply resiliency not just short-term supplier performance

Culture is key with any collaborators along this supply chain journey. You know how you meet someone new but they can almost finish your sentence? Alignment of core values makes building trust so much easier and seeking your defined outcomes smoothly. Know yours and get hard conversations and SOPs out of the way upfront.

Some examples from case studies from my experience as a management consultant for legal, compliance and procurement: The legal department ensures supply chain optimization complies with laws and regulations, covering contractual obligations, intellectual property, and international trade laws. Collaborating closely with procurement, legal reviews and negotiates contracts to align with strategic objectives and minimize disputes. Legal experts identify and mitigate risks associated with supplier relationships, developing strategies to maintain supply chain integrity. They also protect intellectual property by implementing agreements and monitoring usage, while resolving disputes and planning contingencies to ensure business continuity.