Supply Chain Optimisation

What does supply chain optimization mean?

Supply chain optimisation (SCO) is the application of tools and processes to streamline an end to end manufacturing or production operation so as to reduce cost and increase profit.

Working as a Supply Chain Manager tasked with seeking optimization, you are trying to balance the need to deliver what the customer wants at the lowest overall cost and highest overall profit to your business.

What is the goal of supply chain Optimisation?

The goal of SCO is to seek out excess cost wherever it may sit in your Supply Chain process and reduce or remove it without increasing your risk or reducing your efficiency or the product availability to the customer.

How do you optimize a supply chain?

The classic first step in a supply chain optimization approach has been to tackle inventory which is such a large contributor to cost.

Other process approaches to optimization begin by understanding what your supply chain looks like now, its successes, its weaknesses, its gaps.

To find out more about the stages of SCO view the full Knowledge paper.

What does end to end supply chain mean?

Every link in the supply chain costs money and takes time and if you can improve the time it takes to move products to your customers then you can reduce the amount of money that process costs. Raising orders, holding and moving stock, maintaining vehicles, paying invoices and managing cash flow, warehouse overheads are all candidates for optimization.

To find out more on Supply Chain Optimisation and how to conduct this for your organisation, then view the full Knowledge paper (Insert canva)

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Supply Chain Optimisation

 

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Knowledge Topics:

Supply Chain Mgmt. Tools

Supply Chain Mgmt. Tools

See how global supply chains give procurement the opportunity to take advantage of the strengths and innovation of other countries

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What is a Supply Chain

What is a Supply Chain

In its simplest form a supply chain is the activities required by the organisation to deliver goods or services to the consumer

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Networked Supply Chains

Networked Supply Chains

Coming soon

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Managing the Supply Chain

Managing the Supply Chain

You can work in various areas of the supply chain, but the main goal when managing a supply chain is adding value

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Strategic SC Management

Strategic SC Management

When we discuss supply chain strategy we are discussing ‘value’ that can be derived from our supply chain

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Demand Driven Supply Chain

Demand Driven Supply Chain

A demand driven supply chain focuses on the demand from the consumer data and feeds this data through to the supply base so driving greater efficiency

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Technology in Supply Chain

Technology in Supply Chain

“The Future of Procurement and Supply Management” paper offers a reflection of what the profession may look like fifteen years from now

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Supply Chain Network Design

Supply Chain Network Design

SCND covers all movements and storage of raw materials, work-in-process inventory and finished goods from the point-of-origin to point-of-consumption

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Agile Supply

Agile Supply

See how organisations which are ‘agile’ react as quickly as is practicable to provide a cost effective response to customer demand

find out more
Global Supply Chains

Global Supply Chains

Global supply chains are networks that can span across multiple continents and countries for the purpose of sourcing and supplying goods and services

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Lean Manufacturing

Lean Manufacturing

Organisations which are ‘agile’ react as quickly as is practicable to provide a cost effective response to customer demand

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Models

Models

Collaborative procurement is a method by which companies can engage with each other to enhance the effectiveness (SC/Sourcing/Procurement/Cost)

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