Imagine this: Your company's struggling under the weight of rising shipping costs. It's like trying to run a marathon with a heavy backpack. But what if there was a way to lighten that load without sacrificing your race? That's exactly what we did. We implemented a just-in-time (JIT) inventory system, which means our suppliers deliver components exactly when we need them. It's like having a personal runner bringing you water and energy gels right as you need them. Not only did this save us money on storage and reduce the risk of products going bad, but it also strengthened our relationships with our suppliers. They saw the benefits too – less inventory to manage (handling EOL) and faster payments #leanmanufacturing #supplychain

Start the journey with loss based costing. Each loss in the plant is at a cost. eg. cost of machine idling 1. Depreciation 2. Labour 3. Overhead cost Each of such costs need be identified against reasons. The reasons would be 1. Breakdown 2. Changeover 3. Set us and adjustment 4. Start up 5. Slow cycle 6. Time gaps 7. Rejects Some solution could be 1. Autonomous maintenance 2. Breakdwon analysis for major breakdowns and corrective actions 3. SMED 4. Corrective actions for quality issues by RCA 5. Reduce no of change overs by effective scheduling 6. Supplier development 7. Smoothen demand cycle Solutions need be driven with proper analysis and priortization. Loss based costing after implementation will show the effectiveness.

Look for inefficiencies in your material flow, production time, and even communication. Standardize work to reduce variability, but also challenge your team to find creative solutions that reduce costs. The key is continuous improvement—small tweaks over time can add up to big savings while keeping quality intact.

JIT systems depend on good forecasting which is possible only with good historical data and clear understanding of all factors that affect demand. This is usually the trickier part in making efficient supply chains. Can you throw some light on how data and forecasting played a role for you?

Controlling supply chain costs while ensuring quality would involve several key strategies. These include eliminating waste, standardizing work processes, and promoting a culture of continuous improvement. Tools like value stream mapping identify inefficiencies, while Just-In-Time production helps minimize inventory costs. Investing in employee training and leveraging technology such as automation and data analytics enhances efficiency. Collaboration with suppliers ensures quality materials, and emphasizing quality at the source reduces rework. Additionally, engaging employees in decision-making and optimizing workflow layouts, along with monitoring performance metrics, support cost reduction while maintaining high quality standards.