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Supply Chain Improvement Essay

799 words - 4 pages

Supply Chain Improvement

Demand and profits are down and market uncertainties increased. You’ve reduced manufacturing
costs and taken out spare capacity as far as practically possible. Where do you turn your attention
next?
In many cases, the only option is to look beyond the production process to the broader supply chain. Many
leading edge companies have extended their management of physical logistics to address the entire supply
chain process, from supplier to buyer, in order to shorten product life cycles, increase competition, and meet
the heightened expectations of customers. There are clear opportunities for making supply chains more costeffective, more transparent and more ...view middle of the document...

Our approach has helped our clients to
take advantage of investment opportunities in process and technologies at manageable levels of risk.
The advanced technologies that enable supply chain improvements were once only available to larger
organisations. New, inexpensive, open-source technologies are sufficiently simple to provide rapid time-toimplement and immediate benefit and are putting such solutions within reach of smaller companies.
We can help your own people apply best practices to improve performance in areas of opportunity. The
benefits from such initiatives include improving customer service, greater efficiency, lower inventory costs,
shorter cycle and lead times, and reduced supply chain complexity.

Intercai Mondiale is an established business consultancy with a proven
track record of implementing and managing business change.

How much could you improve the performance of your supply chain?
Supply Chain Performance Scorecard
Performance
Attribute
Supply
Chain
Delivery
Reliability

Responsiveness

Flexibility

Cost

Definition
Correct product,
place, time, quantity,
condition to correct
customer

Velocity at which
supply chain
provides products to
customers
Agility of supply
chain to respond to
changes in market,
maintain competitive
advantage
Costs associated
with operating
supply chain

SCOR LEVEL
1 Metric
Delivery
Performance to
Request
Delivery
Performance to
Commit
Order Fulfilment
Lead Time

Your
Org

Performance Versus
Competition
Median
Best in
Class
95.0%
99.9%

95.0%

99.8%

7.3

1.7

Upside
Production
flexibility

29.0 days

9.0 days

Total SCM
Costs as %
revenue

9.8%

3.2%

Value of
Improvement
Revenue
improvement from
customer retention
and reduced cost
of failure

Enables service
and cost
improvement and
competitive
advantages
Reduced
administration
costs

Assets

Effectiveness in...

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