Why should a firm use a supply chain consultant? Organizations today face many supply chain challenges due to the growing complexity on both the supply and demand sides of their business.They want to increase competitiveness by reducing throughput time, increase output capacity whilst maintaining quality and eliminate waste. At the same time they need to reduce inventory, shorten sourcing lead times, reduce labor costs and mitigate risks. Most organizations don’t have the capacity or the in-house expertise to design and implement an optimum solution that combines all these goals.
Areas where supply chain consultants are currently achieving success and where they can demonstrate added value are:
Supply Chain Integration
Businesses need to align and integrate supply chain processes such as sourcing, operations, inventory management and logistics to drive business improvement. Awareness of the need may already be there but specialist advice and intervention from experienced independent experts is required to make it happen. This is especially relevant in the implementation of new or revised systems and processes across multiple functional areas.
Technology Enablement
The identification of the right ERP or other I.T. solution requires in-depth knowledge and experience and mistakes can be very costly. Any new or enhanced information technology must be carefully selected to deliver the required outcome, usually through automating processes and providing business intelligence information.
People alignment
Achieving efficiencies in the supply chain is highly dependant on the capability and motivation of people involved. Empowering people with the skills and the tools to operate successfully in an integrated business environment requires commitment to good human resources management. Consultants can provide expertise and advice on best practice and they should be required to build internal capacity through the transfer of skills and knowledge.
Supply Chain Risk
The incidence of unplanned events is increasing worldwide. Supply chains are vulnerable to extreme weather disruptions, political risk, terrorist attacks, labor strikes and commodity shortages. Resilience in the supply chain can provide a competitive advantage in times of uncertainty. The client needs to be able to monitor situations and have mitigation strategies in place to ensure continuity of supply and maintain customer service levels.
Greening of the supply chain
Environmental issues are becoming high on the agenda of both customers and suppliers. Consultants can support clients on important issues such as managing their reverse logistics, monitoring their carbon footprint, the disposal of hazardous waste and compliance with environmental legislation.
Every organization has the same goals, to improve customer service, decrease operating costs and ensure continuity of operations. So why use a supply chain consultant, if not to improve overall business performance through the streamlining of the supply chain?
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