Supply Chain Consultancy – How supply chain consultancy can improve productivity of your organization?

Sitting on your island and doing the things you need to do might have worked for some decades! In modern times it is all about cross-functionality and interaction.

Unfortunately still too many companies are only looking for cost-reductions and improvements in a silo mode. Functional areas like human resources, finance, IT, sales & marketing, manufacturing, research & development are treated in a unique way without building the required antennas amongst each-other.

Just a few problems with such approach:

• R&D might promote products that are difficult to manufacture 
• Engineering specifications might be exaggerated and thus too expensive to sell
• HR might be evaluating people based upon the wrong KPI’s
• IT might not give the required support this is “good for the business”
• Manufacturing is producing at too high costs
  

Without any doubt, supply chain consultancy can improve the productivity of your organization.

While outlining the right process you might want to consider the following recommendations:

• Develop the awareness that Purchasing serves Manufacturing & Distribution for “direct materials” but owns nothing at all 
• Develop the awareness that Purchasing serves the whole company for “indirect materials” (cars, travel, telecommunication, etc.) but owns nothing at all
• Create a matrix of ownership of products and services within your organization
• Establish a list of key decision makers within this matrix
• Get high level info on the “expectations” of each owner
• Start with your own area , for example purchasing as first evidence of a working methodology
• Have interviews with the key purchasing people and ask them to “openly” express the potential process improvements “across the board” they see on an individual basis
• Consolidate the input , line per line
• Mention, for each improvement, with whom interaction (HR,Finance,etc.) would be required 
• Fine-tune your table by adding: net impact (€), investment needed (Capex and/or Opex), timing for implementation, champion, remarks
• Categorize all improvements: easy (low hanging fruit), medium, cumbersome
• Prioritize the various points (A,B,C) 
• Integrate the methodology of Six Sigma if desired
• Disclose this powerful overview to the Management Team and ask for support for duplication towards other functional areas

Supply Chain and Purchasing executives can contribute significantly to the success of your company. With the “no-ownership” label they will be easily accepted taking the initiative for cross-functional improvements.

Open your eyes before you sink! A well aligned process can make you swim …. opt for supply chain consultancy to improve productivity.

Supply chain innovations for automotive industry

Around the globe you have clearly noticed the current struggle for life within the automotive industry. However, this “cry for help” situation pressurizes the classical known car manufacturers and also the probably future players coming out of China and India to think out of the blue.

"When it works for them it should also be good for us"! A sentence that I heard a lot of times from automotive suppliers being on the "confident" side.

Car manufacturers are using more and more common platforms and technologies but their eager to diversify spins-off on quality.... process and development audits reflecting the technical requirements will tell you a lot!

Who are the champions? :

• Toyota, Honda, Mazda for overall viability
• Audi and Lexus for the interior trim
• Mercedes for long-term stability
• BMW and Alfa Romeo for fun
• Peugeot and Citroen for suspension
  

In order to support supply chain innovations for the automotive industry with a strong cost-reduction edge, you should certainly consider no-nonsense consultants. Not just a standard type of service but much better one based upon extensive field experience from both sides of the table, the car companies and the tier supplier(s). People with the ability to make things happen!

Hereby some key arguments for making this right choice, selecting consultants with:

• a profound knowledge of the automotive landscape
• a strong functional wisdom of the complex material flows in every stage
• a clear sense of the process from innovation up till the final stage of industrialization and after-sales services 
• an understanding of the technical requirements
• the capability to validate products and processes (audit)
• extensive knowledge of various cost-cutting methodologies
• a sense of speed and strong momentum
• the knowledge on how to differentiate one brand to another
• experience in both the original equipment and after-market world

Without in-depth experience of supply chain management, reverse auctions, value analysis, value engineering, simultaneous engineering, outsourcing etc. linked with specific technology you will not walk far in this challenging industry.

Top 10 Supply Chain Consulting Secrets

Supply chain is certainly of great value to your organisation.

When done properly, all the sourcing and logistical initiatives will strongly support you by:

 • Impacting your company ‘s bottom line

• Introducing the best solution out of “Total Cost of Ownership” perspective

• Creating a well balanced supply base

• Minimizing delivery risks

• Assuring a smooth communication flow both internally and externally

• Spreading the word of quality across the board

• Securing flexibility and a “breathing” structure

To make this story successful you need to upgrade, motivate and train your supply chain people yourself or you can call upon consultants to move your organisation up to the ladder. Just make sure to look at your requirements first before engaging the right guys or girls for the job.

Would you like to know the top 10 supply chain consulting secrets to my opinion?

• In-depth knowledge of various cost-reduction methodologies

• Expertise on streamlining and optimizing material flows

• Cross-functionality for the sake of detecting overall process improvements

• Change-management bullet proof

• Capability to combine strategy with implementation going from A to B

• The art of communication

• Taking initiatives and dare to speak

• Ability to work in the clients’ context

• Energy, drive and perseverance

• Flexibility to adapt to (continuous) changes

You can integrate these points into your own story and even use these as guideline for evaluating or hiring the right employees/candidates.

So there you have it, the top 10 supply chain consulting secrets.

Fishing is NOT the alternative!

Why HR managers should opt for supply chain trainings?

Very clear! It’s a certainty that your company will not be successful without a well performing Supply Chain organization.


Reducing your costs on ongoing basis is mainly a matter of expertise, a sense of communication and excellent project management.

Also, streamlining your material flows, optimizing your inventory and reducing your lead times are some examples that are part of the game.

Take some time to address some of the following questions:

• Do you have sufficient capabilities in-house to make “the difference”?

• Are you looking for some kind of permanent guidance or just a one-off support?

• Are you perfectly happy with your current staff and do you trust them to reach higher levels once trained?

• Is a full review and potential re-engineering of your team the preferred option?

• Who will take the lead to assess the training content and provider?

• What would be your expectations and how much are you willing to pay?

• Will everybody be trained or only the “happy few”?

• What mechanism will you set in motion to make sure that everybody learns the story?

• Will you be engaging your own supply chain team only or also other departments?
As the “people’s voice”, Human Resources should be the key interface within your company on this topic!


Hereby enough reasons why HR managers should opt for supply chain trainings:

• It will emphasize the importance of supply chain management within your company

• It will allow people to understand their current position on the “maturity ladder” both from a personal as from a business point-of-view

• It will provide all the required methodologies and processes to reduce costs

• It will teach you how to interact with suppliers and internal customers in the best possible way

• It will strengthen the needs to focus strongly on quality

• It will help you to make the bridge to the future thanks to focus on innovation

• It will support you to interact and even challenge your local engineering community

• It will teach you that not only the price counts

• It will learn you all elements of Total Cost of Ownership

• It will give you insights on how to evaluate and audit suppliers

• It will help you to better understand financials and transactions

• It will open up your eyes on the great need for cross-functionality

• It will teach you all about the cultural business aspects of negotiations

• It will learn you how to work with mathematical models to optimize your material flows and inventory levels

• It will teach you the key points of distribution and warehouse management

• It will support you with possible low-cost country sourcing adventures

I just could continue for ages with “It will” sentences but believe me…I will stop right now!

Like for all types of services, the only solution is to get in touch with the right specialists to create consistent value now and for ever … or do you:

• Ask your doctor to check your car?

• Ask your hairdresser the fundamentals of nuclear science?

• Ask your butcher to take care of the garden?

• Ask your nanny all about chemical engineering?
Hopefully you have answered NO to these questions!

And a yes to opt for professional supply chain trainings.