A Supply chain exists if there are the following prerequisites:
1. Three separate entities (i.e. companies) are identified at least (supplier / manufacturer / distributor / etc.)
2. The consumer is anyway considered in a supply chain framework.
COMMON QUESTIONS CONCERNING SUPPLY CHAIN
- How many factories and warehouses will be needed?
- Is there a warehouse only, how many additional ones?
- Which consumers need to be served and how?
- Which products can be made internally and which externally, and where?
- How many inventory targets must be set in each location?
- Which modes of transportation should be used between different locations?
- What capacity will be needed at each plant and at each distribution center?
- Can we reduce the CO2 footprint?
STARTING A SUPPLY CHAIN PROJECT
The de-verticalization of the companies and, at the same time, an increase of the management complexity of the supply chain, is linked with outsourcing of activities and products not any more part of the core business.
The above is a process that asks a careful business process re-engineering with a systemic approach, pushing the integrations of different actors and stakeholders, sometimes with different standards and speed.
A global approach (also multisite, multicountry, multilanguage, multicurrency) and, at the same time transparent, based on the implementations of common standards, is at the foundation of similar projects.
Production and distribution planning, replenishment, forecast models, etc. will be synchronized and improved with the scope of streamlining the material flow using the right strategic inventory allocation, effective and efficient mode of transportation, etc. Lean management approach is considered in order to reduce excess inventory, waits, queues, etc. and ultimately banishing every form of waste.
The supply chain project will simplify the relationship between customers and suppliers, improve their trustiness, and be more competitive together.
- More reliable customer service to the end customer
- Reduced demand and supply variation
- Reduced logistics and transportation costs
- Better coordination of people
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