While organizations can implement strategies and tools for a more efficient manufacturing process, there are other ways of maximizing or optimizing the efficiency of a supply chain management system.
Traditional supply chain management begins with a solidified definition of a company's supply chain strategy and is reflective of their corporate strategy.The typical formula for a supply chain process creates and carries a product from development, source, manufacturing and to distribution.
Optimizing a supply chain system resembles lean manufacturing, and includes continual re-evaluation and use of specific tools; tools such as a TCO calculator or using a Manufacturing Extension Partnership (MEP) center such as CMTC, which help businesses reach maximum efficiency.
High performance supply chains result from organizations that facilitate collaboration on multiple tiers. The first step in supply chain optimization is developing a strategy for creating attainable outcomes. A strategy’s outcomes should consist of:
The next step in optimizing a supply chain management system is strategizing the implementation and desired outcomes, also known as implementation planning, which ideally includes:
After the supply chain strategies have been developed and implemented, the third phase of supply chain management optimization is called partner engagement. This phase is primarily for the development of partner outcomes, which hold core values such as:
The final stage of the supply chain optimization roadmap involves determining where supply chain optimization occurs; this is when the partner strategy is implemented, with outcomes that:
An important key factor to remember is that, throughout these stages, there should be continual coaching, mentoring and directing for an optimized supply chain management system.
1. The MEP Path
Using the path developed by the Manufacturing Extension Partnership (MEP) allows businesses to focus on the entire supply chain, rather than on individual suppliers. This path helps to improve the delivery speed of the supply chain system, improving collaboration, reducing risks and decreasing overall costs.
Using the MEP supply chain optimization process also allows for better positioning of the supply chain management system: developing, sourcing, manufacturing and distributing superior products at lower total costs, with increased revenue, profit and shareholder value at a faster rate than competitors.
A total cost of ownership calculator can assist in measuring and managing supply chain costs, resulting in lower costs for each individual product the organization sells.
An organization's pursuit for maximizing the efficiency of their manufacturing process is a continuing process. Organizations have a variety of efficiency methods to accomplish this, such as lean or smart manufacturing processes.
Another method many organizations use involves optimizing current supply chain management systems, which traditionally begins with a solidified definition of supply chain strategies, and is reflective of corporate strategy.
The typical formula for an optimized supply chain process that creates and carries a product, from development, source, manufacturing and to distribution, starts with strategy development and finishes with an implemented partner strategy.