For over 20 years Supply Velocity has focused on Supply Chain Management Consulting. We have helped hundreds of firms plan and implement their supply chain strategy. While the term Supply Chain Management has been around since the early 1990’s, its meaning has not always been clear. Some people think it is another name for purchasing; others confuse it with logistics. Our definition of Supply Chain Management (SCM) is:
The coordination and management of materials, information and money from suppliers’ suppliers, suppliers, your firm, customers, and customers’ customers to provide great service for customers and profitably grow sales.
Our Supply Chain Management consulting services focus on helping clients make decisions that can improve the performance of their firm, and their supply chain. These include qualitative and quantitative supply chain decisions. Unlike many supply chain consulting firms, we blend Lean Six Sigma methods into all of our consulting services. Therefore, we are continually looking in the supply chain to identify and eliminate waste and solve difficult problems. This makes supply chain management an aspect of your Lean journey of continuous improvement.
Aspects of supply chain strategy and the supply chain services provided by our consulting firm include:
- Aligning internal functional departments around serving customers, managing suppliers, and collaborating with both
- Determining which customers and suppliers should be involved in an active collaboration program including collaborative planning, forecasting and replenishment (CPFR), sales and operations planning (S&OP), sharing inventory data and new product development
- Creating processes to integrate suppliers into planning, inventory management and new product development
- Integrating information technology into supply chain processes
- Understanding the level of flexibility, resilience, and agility to build into your supply chain to effectively manage supply chain risk
- Designing your supply chain network, including warehouses and factory locations
- Mitigating the Bullwhip Effect
- Evaluating when economies-of-scale are advantageous to costs and customer service
- Choosing the transportation mode and routing that optimizes costs and customer service.
- Deciding the supply chain performance measures for your firm, your suppliers and even your customers
Assessment of your Supply Chain Strategy and Processes
The first step of creating your Supply Chain Strategy and streamlining supply chain processes is to conduct an Assessment. In the 20+ years we have been providing supply chain consulting services we have honed a fast and effective Assessment. We accomplish in a few days what can take weeks for other consulting firms.
Supply Velocity’s Clients benefit from this Assessment by the identification of all Supply Chain Optimization and Supply Chain Analysis opportunities. The Assessment provides a road map for organizational improvements that the client can use on their own, or we can assist and facilitate the development and implementation of the supply chain strategy. Improvements we facilitate often involve the use of Lean Six Sigma to support the streamlining of processes.
Supply Chain Optimization and Supply Chain Analysis are two important, but complimentary methodologies for profitably growing sales through great customer service and disciplined cost management.
Supply Chain Optimization is the evaluation of tradeoffs in your supply chain, including delivery times, inventory availability, transportation costs, facility costs, inventory investment and which suppliers to purchase from – all to find the highest service and lowest cost supply chain design. These design decisions include: 1) the number and location of your factories and/or warehouses, 2) the level of your inventory investment (raw materials, work-in-process and finished goods, 3) the choice of your transportation mode and design of your routing system, and 4) your strategic sourcing decisions. Supply chain optimization is often a component of supply chain strategy.
Supply Chain Analysis involves a comprehensive review of your data to find unseen patterns in demand and cost data. We use various statistical modeling and data analytics tools to determine where cost-reduction and service improvement opportunities may exist. In addition, we combine these analytics with supply chain management best practices including mitigating the Bullwhip Effect, supply chain collaboration, product development, strategic – tactical – operational supply chain decisions, global supply chain management, supply chain risk mitigation, choosing the best supply chain design for your products and understanding the importance of information technology in implementing supply chain management. Supply chain analysis supports supply chain optimization.
Supply Chain Management Assessment Timing & Summary
An Assessment is a 2 – 4 day process involving 1) interviews with key personnel (executives, managers and individual contributors), 2) analyzing financial and operational data, and 3) facility tours.
Supply Chain Management Assessment Outline
- Interview key personnel
- Finance
- Sales
- Operations
- Supply Chain
- Purchasing
- Inventory management
- Logistics
- Engineering
- Customer Service
- Analysis of financial and operational data
- Facility tours
- Evaluate key improvements in the development of your Supply Chain Strategy
- Supply Chain Optimization opportunities
- Supply Chain Analysis opportunities
- Integrating Supply Chain Management Best Practices
- Calculate return on investment from implementation
- Determine team members and timing