Wednesday, December 23, 2015

Time for a visit from the supply chain doctor?

Here’s a revelation: your company has supply chain inefficiencies. And guess what? Correcting some of these inefficiencies could bring substantial savings, while improving logistics performance. The problem is how to uncover these issues and prioritize which ones to address.

Think of it like visiting a doctor. You can wait until you have an ache or pain, or in this case “pains” such as costly overtime or increased transportation costs. A more proactive approach, however, entails visiting the doctor’s office for regular health checkups. Your doctor can highlight areas to work on to improve overall health, but most importantly, head off major issues later on.

This is the role a supply chain consultant can perform for your company. Their “health check” will focus on key decision-making levels – strategic, tactical, and operational.

Strategic can look at things like:
  • Network optimization
  • Facility Layout
  • Space utilization
  • Pick/pack strategy 

Tactical includes:
  • Ship-to alignment
  • Safety stock analysis
  • Mode conversion
  • Racking configurations

Operational touches on:
  • Carrier and mode selection
  • Transit time analysis
  • Metrics and reporting
  • SOP creation

What companies will receive following a consultant’s visit is a roadmap to improving the health of their supply chain. The best logistics consultants will not only identify areas of improvement, but prioritize them and provide an ROI calculation. Companies then can enlist the services of a supply chain professional to swiftly correct high-priority inefficiencies.

It’s a simple fact that you can’t fix what you can’t measure. Enlisting the help of a supply chain consultant will not only help identify problems and corrective actions, but they also can assist with developing metrics to measure performance moving forward. The end result is a healthier supply chain.