Supply Chain Strategy

Supply chains in today’s global businesses are changing rapidly. Supply bases are relocating to low-cost regions. The roles of suppliers, contract manufacturers, and partners are evolving. And the products that we push through these supply chains are becoming increasingly complex.

  • How should I structure my supply chain network given recent changes in my business?
  • Can I consolidate my supply chain to capture greater efficiencies?
  • Which transportation modes should I use - air, sea, or land?
  • How can I adjust my inventory levels to reduce costs and/or better align with my customer service requirements?
  • How can I improve forecasting processes along my supply chain?
  • How should I structure contracts with my suppliers and outsourced supply chain partners to minimize risks to my business?

Strategic Management Solutions can help your business to better manage its supply chain through:

  • Conducting an assessment of supply chain enhancement opportunities in your business
  • Modeling the costs and benefits of alternative supply chain network structures to support your operations
  • Developing appropriate inventory stock targets based on measured inventory holding and stockout costs in your business
  • Designing forecasting processes that fit with your business and simplify workflow
  • Developing contracts with suppliers and supply chain partners to ensure appropriate risk sharing and flexibility management

Example Projects:

1. Developing strategic inventory target levels for a North American consumer computer monitor business. By measuring the costs of holding inventory as well as the impact of product shortages on channel sales, we were able to recommend appropriate inventory levels to trade off the costs and risks of inventory excesses and shortages.

2. Developing processes to reduce costs between a global printer manufacturer and its outsourced supplier in their spare parts supply chain. Through improved communication schedules, elimination of unnecessary order batching, and the design of rolling ordering rules, the client was able to reduce inventory-driven costs for itself and its supplier by over 25%, strengthening the partnership between the businesses and allowing for negotiated cost reductions in return.

 

 

Research:

Click here to access Strategic Management Solutions’ recent article on product design for supply chain:

Design for Supply Chain - Spreading the Word Across HP, Supply Chain Management Review, August 2006.

 

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