Supply Chain Management
As part of their Operations Excellence initiatives, today’s companies are using supply chain management as a powerful way to minimize overall costs and, in particular, the range of products offered, to allow shorter production cycles, and ultimately increase the company’s profitability.
The supply chain of a company is to be understood as a network between a company and its suppliers, which has the task of producing a specific product range and distributing it to the end user. The organizations involved in the supply network generally include: manufacturers, suppliers, vendors, warehouses, carriers, distributors, resellers, and the customer.
- Optimization of the entire supply chain tailored to your needs
- Creating more reliable delivery processes
- Structure of a key figure system
- Supplier development and auditing
- Qualification of the supply chain (suppliers) and manufacturers
- Reduction of inventories along the value chain with new warehousing concepts if necessary
- Reduce process time and reduce procurement costs
Supply chain management involves more than just logistics, which involves physical activities for timely, high-quality and cost-effective delivery. In the area of supply chain management, the processes that directly correspond to the order processing, such as information and cash flow processes to the supplier, are treated and optimized. This happens across the entire supply chain: from the raw material to the customer. The alignment of the entire value chain is based on customer demand.
The latter in turn requires a flexible, needs-based and above all an agile supply network. The supply chain has to be robust and sustainable.
To achieve this, the planning, implementation / control and the continuous improvement of the supply chain are usually considered at 3 levels:
Level 1: Strategic Supply Chain Management = long-term view (several years)
Decisions are made with long-term success and a high capital outlay. These include, e.g. Number, locations and capacities of facilities, investments, distribution strategies and external services through outsourcing.
Level 2: Tactical Supply Chain Management = medium term consideration (few months to 2 years)
The decisions are operational in the medium term and concern the allocation of logistics and production tasks to the respective resources, e.g. Transport and shipping strategies, production decisions, inventory planning, personnel components such as employees and working hours.
Level 3: Operational Supply Chain Management = short-term consideration (a few days to a maximum of 3 months)
The decisions can be implemented at short notice. There are quickly realizable specifications for the execution of the processes, such. Product loading, order processing, assignment of orders.