In this Supply Chain Byte, Lisa Anderson discusses two recent examples: a fire affecting a medical device distribution center and another involving a cold storage facility. Both highlight why manufacturers and distributors need more than a static plan.
Armacell partnered with LMA Consulting Group to improve customer service and supply chain performance across its manufacturing and distribution network. By leveraging data, improving ERP utilization, strengthening SIOP processes, and aligning teams across functions, the company increased service levels from approximately 40% to more than 85%, while building sustainable processes for long-term success.
Taking your supplier / customer relationships to the next level of partnership is integral to supporting profitable growth with exceptional customer service and cash flow (ie. inventory turns) levels. Vendor managed inventory (VMI) can be integral to maximizing revenue/ service, profitability, and working capital.
Increasing inventory levels is seen as a trade-off with service and efficiency levels; we find that a win-win-win is achievable. The key: Have the right inventory in the right place at the right time and gain a predictive view of demand to optimise your schedules to reduce inventory while increasing service and efficiency.
VMI (vendor managed inventory) is the process where the supplier manages the customer's inventory so that the customer has the "right" item in the "right" place at the "right" time to ensure high service levels, efficient and productive operations, and the least amount of inventory tied up unnecessarily. The best VMI programs ensure that the end-to-end supply chain gains with both the supplier and the customer achieving improved results or benefits.
According to a McKinsey study, investment in supply chain digitization is slowing down after rapid growth in 2020-2023. On the other hand, the McKinsey Global Supply Chain Leader Survey finds that nine out of 10 respondents continue to experience supply chain challenges. And, according to Reuters, supply chain glitches [...]
As revenues remain volatile, disruptions plague supply chains, and interest rates remain high, executives' ability to build revenue, margin and working capital predictability and improvement takes on an elevated importance.
If you follow the stock market, you might think the economy is strong. As consumers, we are frustrated with the price of everyday supplies such as food, gas, and housing.
Enterprise resource planning systems, CRMs and other tech such as RFID, barcoding, customer and supplier portals, blockchain, IoT, and GPS tracking all support this goal.
In the last month, we've participated in at least six economic forecast presentations or discussions with experts (economic, banking, investment, manufacturing). Although they each had nuances, common themes emerged. Adding our expertise into the mix, we see volatility on the horizon.
