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Supply Chain Management is a hot topic. The emergence of the Internet, evolving customer demands, and pressure to accelerate business processes are pushing the boundaries of traditional ERP and supply chain automation. The ecosystem is expanding, and IT architecture is evolving to address tremendous opportunities. Just-in-time manufacturing and vendor-managed inventory are just two examples of business requirements that are driving automated collaboration, and therefore increased demand for integration across the manufacturing industry.

Do you need to reduce costs, improve supplier performance and achieve a greater competitive advantage? Supply Chain Management can help you accomplish these goals. Supply Chain Management can improve customer satisfaction, reduce inventory and cycle-time and many other costs. A supply chain exists for every manufactured product. It includes purchased material, transportation, sub contract work, manufacturing operations and shipment to your customer. Your customer may include it in their manufacturing process - so a supply chain can ultimately link many organizations before the final end product is created.

Until now marketing, manufacturing, and purchasing departments across organizations have operated independently. Technology advances now enable more collaboration and information sharing. This results in building to inaccurate forecasts and purchasing contracts issued with very little demand information. Most supply chains are ripe for extensive cost reductions. The typical analysis for supply chain management examines:

  • Inventory - the inventory for each item is analyzed - who will hold it and how much will be stocked
  • Location - which company should hold the inventory
  • Production Schedules - to to coordinate schedules of linked organizations
  • Transportation - shipment consolidation and frequency

Supply Chain Management offers companies tremendous opportunities for improving profits - improvements that have been achieved are:

  • Fulfillment Cycle Time - 30% - 50% Reduction
  • Inventory - 20% - 60% Reduction
  • Product Costs - 20% Reduction
  • Productivity - 10% Improvement

Supply Chain Management offers companies tremendous opportunities. And while it is one of the most talked about strategies in business today, it is also one of the most misunderstood. Too often efforts are focused on price, a few process improvements and inventory reductions. But there is so much more that suppliers can help you to accomplish. Let us show you what the impact can be by working with just one of the commodity / service spending areas.