Consolidate your supply chain footprint
Consolidate your supply chain footprint

Supply Chain Transformation

A regular review of your supply chain is a healthy and proactive approach for converting performance constraints into real supply chain cost out. Undertaking a supply chain transformation project can typically encompass a full end to end review of existing 3PL warehousing, manufacturing and distribution facilities or rather a customised focus on an individual supply chain function.

Your organisation may be pursuing acquisition opportunities, finalising business integration projects or simply looking towards consolidating a cost prohibitive supply chain model. Our approach is the same in all cases by following a proven project management methodology with an integrated change management program.

The success of our approach is driven by a detailed understanding of your current supply chain, its process disconnects and cost exposure that is eroding an operational budget. The core elements of procurement, inventory management, supply chain systems, processes and people are assessed using a fact based approach. The outcomes will form part of an implementation roadmap that is project management.

Successful supply chain transformation

Project Governance Framework

The core of an effective project governance framework is its ability to provide a base structure for decision making with clearly defined roles, responsibilities and planned outcomes for the entire project. By adopting a functional approach, the business case can be developed with greater clarity and more achievable outcomes as the experience of each stakeholder increases this confidence level. Too many projects tend to fail from the outset due to lack of proper planning, lack definition and have an unrealistic cost base.

Supply Management

In a multi vendor supply chain, inventory is created to support customer demand and leadtime variability. The traditional model of inventory management creates multiple stocking points where safety stock is increased to offset this uncertainty. Improving forecasting is always problematic and will only go so far to minimise this variability. By getting closer to your customers demand decision points will allow for inventory to be made as late or purchased as possible in your supply chain reducing inventory carrying costs.

Inventory Management

In a multi vendor supply chain, inventory is created to support customer demand and leadtime variability. The traditional model of inventory management creates multiple stocking points where safety stock is increased to offset this uncertainty. Improving forecasting is always problematic and will only go so far to minimise this variability. By getting closer to your customers demand decision points will allow for inventory to be made as late or purchased as possible in your supply chain reducing inventory carrying costs.

Inventory Range consolidation

This is always a balance between the value proposition developed by a marketing team and the ongoing supply chain costs by carrying non working and working inventory. Rationalising a range is an emotional decision that is difficult to qualtify at times as the true value to a customer varies. Supply chain analytics is an approach that is used to make decisions on range consolidation by using fact based data over a period of time. A range versus stock tradeoffs can be achieved if the emotion is removed.

Outsource to 3PL

 A difficult decision when the operation is heavily commited to extended leases on its existing supply chain footprint. Transitioning to a 3PL is a consideration as the benefits of cashlflow relief may be realised through reduced fixed costs, demand fluctuations can be more easily supported and your business can focus on core competencies rather than supply chain management. Relationship management and loss of direct customer interaction need to be carefully considered.