How Lean is your Supply Chain?
Most companies have still not fully achieved optimised supply chains that are linked to business objectives, built around core processes, enabled by technology and integrated with suppliers and customers. In addition most companies have still not clearly identified what their full supply chain costs are, or linked financials to their core supply chain processes. Joe Aherne believes that all companies should perform a comprehensive supply chain assessment measured against their peers and across industries. It should target supply chain inefficiencies, assesses manufacturing effectiveness and act as a catalyst for developing supply chain strategies and action plans based on facts.
Some of the financial results achieved by clients from a supply chain assessment can include:
- Reduced product cycle times
- Reduced inventory levels
- 98% + on-time deliveries
- Reduction in supplier base
- Reduction in suppler lead times
- Reduction in scrap, rework and warranty costs
- Production costs decreased
- Reduced cost of quality
- Reduced direct material costs
- Reduced product development cycle times
In addition there are other non-cost enhancements that can be delivered including better customer service, product quality improvements, increased product availability and enhanced asset utilisation.