September 16, 2018 feichang 0Comment

Business Supply chain management requires a holistic approach that measures critical points in the process. The modern business needs to change the traditional manner of procurement and logistics management, where functional areas are separated into stove-piped areas. The areas of sales, marketing, supply, maintenance, engineering, and logistics need to be integrated in a process that aligns these functions to gain efficiency and optimal performance. In 2009, the Institute of Supply Management stated that a 2.5% reduction in procurement costs produces the same amount of profit as a 10% increase in sales. Organizations can realize the value of strategic procurement, metrics, and performance evaluation by understanding the fundamentals and development process. In 2003, Cook and Hagey discuss the fundamentals of an effective supply chain in their article published in the Journal of Business Strategy entitled "Why .panies Flunk Supply Chain 101." Five fundamentals make up effective supply chains: one, the correct strategy; two, talented managers; three, effective metrics; four, broad vision; and five, understanding the differences between .ponents of the supply chain. Although each is important, replacing hunches with metrics enables managers to track quantifiable measures with rigorous methodology and quality data. Decisions can be made to mitigate customer impact by linking metrics to customers, supplies, and logisticians. Flexibility to change as required to reduce costs, improve responsiveness and meet the needs of the customer are critical to supply chain performance. The process develops measurements meant to be flexible and enable the supply chain to be tailored to the unique needs of any organization. Five steps create an effective procurement foundation: mapping, validation, collection, analysis, and documentation of results and findings. By undergoing supply chain re-engineering, an organization focuses resources to improve all areas of the supply chain, such as relationships, planning, positioning, and delivery. The results of transformation are improved forecasting, distribution, collaboration, and automation. Managers require key personnel to monitor and evaluate key measurements of performance. Effective supply chain management ensures finished goods are available at the distribution centers, enable reliable and responsive production capabilities, make certain efficient use of production resources, and provide for effective production planning. With standardization .es efficiency and flexibility, and methodologies, such as Six Sigma and Lean manufacturing, provide systemic methodology for the establishment of process standards. In 2004, Ramakumar and Cook stated in " Process Standardization Proves Profitable" for Quality Journal that .panies engaged in process standardization are able to manage .plex value chains and are 73 percent more profitable than .anizations that do not use standards. To implement standardization, an .anization must define metrics, enforce clear business rules, develop a logical flow of data and remain flexible to meet an evolving business climate. When sales are down and costs are rising, supply chain management enables an .anization to maximize resource utilization and cash optimization. Explore supply chain management strategies as a way to improve the bottom-line of your business during these challenging economic times. Copyright (c) 2010 Randall Mauldin About the Author: 相关的主题文章: