Supply Chain

Supply Chain is the complete network in which a company delivers its product or service and includes suppliers, warehouses, distribution centres, transportation providers and retailers. The end-to-end functions in a supply chain include product development, purchasing, manufacturing, warehousing, logistics, customer service and finance.

 

It is known that a well-run supply chain operations reduces operating costs and boost profit margins for the business, at the same time, enhances customer satisfaction. The effective management of relationships with suppliers upstream and downstream has been a common go-to supply chain tactic for many companies in enhancing customer value and lowering costs.

1. Supply Chain Consultancy

 

The true capabilities and competence level of a supply chain network is established through Supply Chain Network Optimization (SCNO) modelling. This enables evaluation and optimization of the end-to-end supply chain from a financial perspective, focuses on optimizing network structure based on capacity constraints and aggregate overall flows of materials.

 

Supply chain policies, network structure, and integrated operations are evaluated to optimize the trade-offs of cost, time and capacity in the network. SCNO assess and makes recommendations for the manufacturing footprint and distribution structure (distribution centres and hubs), inventory and transportation costs in order to achieve optimization.

1. Supply Chain Consultancy

 

The true capabilities and competence level of a supply chain network is established through Supply Chain Network Optimization (SCNO) modelling. This enables evaluation and optimization of the end-to-end supply chain from a financial perspective, focuses on optimizing network structure based on capacity constraints and aggregate overall flows of materials.

 

Supply chain policies, network structure, and integrated operations are evaluated to optimize the trade-offs of cost, time and capacity in the network. SCNO assess and makes recommendations for the manufacturing footprint and distribution structure (distribution centres and hubs), inventory and transportation costs in order to achieve optimization.

2. Inventory Optimization

 

Reducing inventory and maximizing customer satisfaction are conflicting in nature. Inventory optimization involves balancing the three key factors of demand, service level and lead time. Through the right inventory optimization model, it is possible to strike the right balance and achieve minimal out-of-stock to improve revenue, maintain adequate safety stock level to bring down excess inventory and improve inventory turnover.

3. Cost-To-Serve Optimization

 

A Cost-To-Serve modelling involves allocating all direct and indirect variable operating costs to products and customers, as long as it is associated with fulfilling a customer order. It is important to also consider fixed costs and revenue in the cost-to-serve analysis to make a complete picture, which will avoid the risk of making decisions to drop product or customer for the variable cost when the fixed costs still exist.

 

The objective is not to eliminate customer or products, but to make every product and customer combination as profitable as possible. Implementing changes must also be executed carefully to avoid passing fixed costs to other customers and reducing their profitability as a result.

3. Cost-To-Serve Optimization

 

A Cost-To-Serve modelling involves allocating all direct and indirect variable operating costs to products and customers, as long as it is associated with fulfilling a customer order. It is important to also consider fixed costs and revenue in the cost-to-serve analysis to make a complete picture, which will avoid the risk of making decisions to drop product or customer for the variable cost when the fixed costs still exist.

 

The objective is not to eliminate customer or products, but to make every product and customer combination as profitable as possible. Implementing changes must also be executed carefully to avoid passing fixed costs to other customers and reducing their profitability as a result.