What is the difference between a Supply Chain consultant and a Supply Chain company and how can we choose the right service provider? The answer is not immediately obvious because these terms seem to be interchangeable. However, the main difference is in the approach. Supply chain consultants provide informed and impartial advice to organizations to improve the performance of the overall supply chain. Supply chain companies typically provide a defined range of operational services based on economies of scale linked with related advice and support.
Supply Chain consultants
Most organizations are immersed in day-to-day operations and although they may recognize problems in the supply chain they lack the time or expertise to make improvements or to reduce their risk exposure.
Supply chain consultants define and specify realistic strategies but do not always stay to implement the recommendations. They develop solutions using statistical and analytical tools with the aim of integrating various disparate supply chain functions.
Supply Chain companies
Typically, supply chain companies provide industry-specific supply chain management solutions, often on a global basis. The top companies in this sector are multi-national and provide the full range of services: plan, purchase, store, move, and logistics support. They may have a pre-defined set of services and use their own proprietary technology.
When should a firm use a supply chain consultant?
The business environment changes quickly so to stay competitive firms need to move fast to keep ahead. One way to do this is to redesign or revamp the supply chain to be more responsive and flexible. Consultants devise supply chain strategies based on an organization’s operations, resources, and other capabilities.
One key objective is to harmonize and integrate activities that may have been working independently because of for example, location or product line. Using analytical tools such as Six Sigma, defects can be minimised, processes can be improved and costs reduced. Lean manufacturing, often called “lean”, aims to eliminate waste and deliver better “value” for customers. Top consultants have the qualifications and solid extensive experience in using these tools across many industries.
When should a firm use a supply chain company?
To get products to market faster, move products internationally or understand the complexities of foreign trade, the choice of an established supply chain company could be the answer. Such solution providers can help reduce costs, lower inventories and increase the speed of throughput using applicable technologies.
Supply Chain consultant or Supply Chain company?
Companies that have simple supply chains in an uncomplicated industry may not have the need for a detailed analytical assessment of their operations or a strategy review. But if they do, supply chain consultants could be the answer.
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