3 Scenarios where effective supply chain management increase value to the cycle
Managing your supply chain is a difficult task. In today’s global economy where demands and supplies are at a global scale makes supply chain management even more challenging. However, there are technologies that exist today to help accomplish this challenge. According to IBM in 2017 alone, a typical supply chain accessed 50 times more data than just five years earlier. However, less than a quarter of this data is being analyzed. This means that many valuable insights are lost. As a result, making the supply chain less efficient than it could be otherwise.
Listing 3 scenarios where effective supply chain management increase value to the cycle. This includes the capability the identify a potential problem and to identify the current problem in real-time, to optimize sourcing strategy by purchasing at the right timing. Lastly, to allocate the resources effectively by making a data-driven decision, utilizing data such as expected raw material delivery date, sales forecast, actual order, demanded lead time…etc.
Identifying potential problems. To be able to solve the problem quickly is good. However, it is even better to prevent a problem from occurring in the first place. From an equipment perspective, operational data can be collected to conduct preventive maintenance. As we know that having machine downtime can be costly. From a sales perspective, when the customer order surpasses the amount that the manufacturer can deliver, this can lead to poor buyer perception and therefore complaints. Through data analysis, manufacturers may be able to anticipate the shortage before the problem occurs. If unfortunately, and problem ultimately occurs, whether it is a delivery issue, a capacity issue, a production quality issue or an equipment issue. it is important for the manufacturer to be able to identify the issue quickly.
Optimizing sourcing strategy. Sourcing at the right timing can provide you with sufficient raw materials and component to match the demand. Sourcing at the right timing can also reduce your cost. As we know that many of the seasonal products have a limited shelf life. At the end of the reasons, these products are either scrapped or sold at deep discounts. By taking advantage of the analytic software, a sourcing strategy can be forecasted and formulated to improve margins.
Allocating resources effectively. Have analytical software tools help you to dynamically allocate resource across the production floor. To optimize your work schedule and delivery schedule according to the sales forecast and actual orders. To be able to provide and confirm an order delivery date to the customers when the order is placed.
Article by Daywey Chen, KYMC