|
|
5 Steps to a More
Efficient Supply Chain
Build relationships with vendors.
It is beneficial for vendors and buyers to collaborate on inventory
management and even new product development. By sharing information
about market trends, demand and capacity, companies can avoid
cyclical overruns and shortages. This kind of cooperation helps
both the vendor and the customer to reduce transaction costs,
bolstering their bottom lines.
Such relationships are based on trust. Seek out established
vendors with an experienced and knowledgeable sales staff that
knows the market and is willing to share its research.
Streamline your decision-making procedures.
Supply chain processes today require that decisions be made
based on a lot of information in very little time. Where it
was once a matter of weeks, executive decisions in the supply
chain must now be made in days and even hours. If critical assessments
and evaluations are bogged down in bureaucracy, opportunities
will be lost and profits will suffer.
To take advantage of fast-changing market conditions, customer
demand or part shortages, and managers must have the experience
and --- most importantly --- the authority, to act quickly and
make decisions.
Use the three Cs to eliminate organizational barriers.
Units within an organization often inadvertently work in opposition
to one another. Independent functions, such as production and
fulfillment, usually maintain their own support systems ---
and these often come into conflict.
To foster closer working relations between units, it is helpful
to apply the three Cs.
| Communication: |
It is important to stress
constant communication between enterprise organizational
units and supplier networks. |
| Coordination: |
Coordination is the process in which
those units and networks interact on a timely basis. |
| Collaboration: |
Collaboration is the ability to electronically
share information about business activities and interact
across the supply chain. |
Together, the three Cs create a more efficient supply
chain operation.
Make better use of mobile devices. Ironically,
many companies in the electronic components and computer parts
industry have been late in adopting cutting-edge tools. A case
in point is the use of mobile devices to speed the exchange
of information along the supply chain.
The utilization of mobile devices such as bar code readers are
rapidly changing the way companies conduct sourcing, manufacturing,
and distribution activities. They have proven to be extremely
effective in improving cycle time and reducing costs. As new
features and functionality are added to them new opportunities
for value-added services will be created.
Recognize the importance of transportation.
In recent years most discussions about improving the supply
chain have focused on information and technology. But of equal
importance is the role of transportation. Information can be
digitized and sent thousands of miles in a matter of seconds,
but parts and raw materials cannot.
It is therefore important to acknowledge the potential problems
that an interruption in transportation systems can create and
plan workable backups. Collect information about labor negotiations,
fuel prices and weather conditions when choosing a carrier.
Keep in mind that transportation represents approximately 60
percent of logistics costs and is the first place to look when
economizing.
|
|
|
