Let’s start with a few definitions.
A supply chain is the system of people, assets, activities, and information involved in the production and delivery of goods and services to customers.
Supply chain management is the strategy and execution to balance service, cost, and working capital cycle (the time it takes from when you pay for materials, production, and inventory and when you receive payment).
Start by asking yourself these provocative questions to understand better how can supply chain adds value to the business.
If you’re unsure of the answers, Waypost Advisors’ supply chain consulting can help. Consider this real-world example.
A privately-held, $270 million food manufacturing company wanted to ensure they were getting the best return on their capital invested. They needed to understand how their key priorities for improvement aligned with their growth strategy.
The business’s basic metrics included:
As well as a few others. But they didn’t really have a great idea of where they should focus improvement and what would be the value.
With the help of our supply chain advisor, the food manufacturing company was able to understand the details of the key drivers of their business’s success.
They designed and implemented key performance metrics such as:
With this information, the food manufacturing company was able to see how they were performing against the areas that were critical to their success, such as:
They created a program to measure the inputs and outputs of capital projects. The program included conducting a root-cause analysis when they did not meet their targets to ensure the effectiveness of their capital investments.
They also implemented continuous improvement and capital projects to address issues such as:
Within 6 months, the food manufacturing company was able to:
This is the experience our advisors can bring you!
Our advisors understand the value an effective supply chain can bring to your business. Let’s talk about your supply chain improvement opportunities! Schedule a 30-minute free consultation with our supply chain advisor to learn more.