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| Supply Chain Implementation |
Supply
Chain Management offers companies tremendous opportunities
for improving profits. However, over 50% of the
companies that undertake this strategy see only
minimal results or their initiative fails altogether.
Why? There are a number of reasons, but most can
be traced back to a failure to plan. With over 200
different opportunities for reducing costs, most
companies choose to focus on only the few that everyone
else is focused on: inventory, processes and price
paid. This failure to look at other issues, the
risks involved, the performance needs of the users,
or the investment required to accomplish your plans,
before implementation, often results in short term
gains and long term loss.
The first step for any company that wants their
supply chain efforts to flourish is to create a
commodity/service plan. This plan is basically an
investment strategy for each group of goods and
services; companies use this to determine how to
maximize profits through their suppliers. Without
a commodity/service plan, it is difficult to evaluate
suppliers effectively and ensure the right supplier
is chosen to achieve the improvements in profits
that a company desires.
One of the most effective aspects of commodity/service
planning is the development of teams for identifying
the issues important to each group of goods or services.
A team structure is important because different
areas within a company are impacted by suppliers
differently. These teams often make the difference
between success and failure. In effect, they are
the means to achieve your goals by:
- Developing investment strategies around the
total cost issues facing your company.
- Managing the change – getting everyone working
toward common goals.
- Creating supplier evaluations based on total
cost.
- Developing implementation plans that minimize
potential risks while achieving significant
cost reductions.
These teams should be used for every stage of implementation:
commodity/service planning, implementation and maintenance
(documentation of the supply chain savings and identification
of other opportunities to reduce costs). Each of
these stages requires that different steps be accomplished
in order to achieve the greatest results possible.
Planning how you will reach the goals set by your
supply chain efforts and constantly updating these
plans is the foundation to a successful, and profitable,
Supply Chain Management process. |
For more information on how Supply Chain Management
and the Total Cost of Ownership can help your company,
take a few minutes to review the following opportunities:
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Training / consulting:
Joint Customer / Supplier Training (TCO)
Supply Chain Management
Understanding / Measuring
Total Cost
Supply Chain Implementation
Documenting
and Selling Value Added
Developing
a Unique Selling Proposition
Sales
Management
Manufacturer / Distributor
Relationships
System Integration
Managing for Profit |
Software:
SOURCINGSTRAT
SALESSTRAT
Train the
Trainer for Developing a Unique Selling Proposition
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Video:
Developing
a Unique Selling Proposition |
Books:
Strategic
Alliances
Team Up! Profit
Up! |
Or contact us at:
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Strategic
Business Solutions
PO Box 35895
Tulsa, OK 74153
Phone: 918-494-8085
Fax: 918-494-3718
Email: info@sbs4me.com
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