Why use a Supply Chain consultant?

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?

Cost Reduction Techniques Workshop held at the American Chamber of Commerce in Belgium

Author: Nick Klenske

As part of an ongoing effort by AmCham Belgium to reach out beyond Brussels, last month, members made their way to Lier for a dual workshop/Business After Hours event. Hosted by local company Antilope Printing, first up was an informative workshop on “Advanced Techniques to Reduce Costs”.

Presented by Johan van Hamme, Managing Director of Clear Vantage, the workshop focused on how companies can reduce costs within the supply chain. According to van Hamme, it all starts with maintaining positive interaction with one’s suppliers.

“There are a handful of important and key elements here,” says van Hamme. “For instance, companies should start by evaluating their supplier dependency in light of new developments. Motivation is also important and companies should motivate suppliers by providing information and feedback on quotations and certainly going out and visiting their facilities.”

In terms of the most commonly used methodologies for reducing costs, Clear Vantage lists the following:

• Incumbent sourcing

• Re-sourcing

• Reverse Auctions

• Standardization

• Value Analysis/Value Engineering

• Innovation

• Purchasing Pool

• Cross-Functional Process Improvements

• Rebate Methodology

• Supplier Reduction and Spend Consolidation

• Clear Target Setting

• Payment Terms Review

• Operational Process Optimalization

• Demand Management

• Strong Contracts with Vendors

Case in Point

To highlight these recommendations in action, Clear Vantage pointed to the costs reduction work they did with Antilope Printing. Starting with the question of “Do You Manage Your Production & Distribution Process?”,the focus of the project was on optimizing a company’s marketing and publication process by truly understanding how it is managed.

According to the presentation by Koen Van Den Bossche, New Business Consultant at Antilope Printing, the Media Supply Chain involves such players as concept and design, photo shooting, copywriting, layout, translations, proofreading, printing and distribution. And when a company multiplies this chain for a variety of different publications – such as brochures, instore communications, installation instructions, service manuals and websites – the costs quickly skyrocket.

“The key here is to see where one is duplicating efforts – and thus also duplicating costs – and optimize,” says van Hamme. “The best way to optimize here is to use web-based marketing automation tools, creating a centralized source of marcom materials for creation, management and production. The result is the ability to share and re-use instead of re-creating.” The benefits? A cost saving of up to 30 percent, consistency in communication and less resources and reduced time to market.

Following the workshop, guests took advantage of the evening for a Business After Hours networking event Hosted by both Antilope and Clear Vantage, Supply Chain Consultants. A crowd of roughly 50 enjoyed food, drinks and – of course catching up with old friends and making new contacts.