Best Practice Overview
Supply chain management (SCM) is the process of optimizing the shipment of goods and services from supplier to customer. The goals of SCM are to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment and reduce cost. Today’s supply chains for mid and large companies span the globe, with suppliers and partners in multiple countries and multiple time zones.
AMS has assembled a team of executive level experts with a full spectrum of logistics experience. However, it is not the logistics that sets this team above our competitors, it is there understanding of the “quality” roots that SCM was born from. SCM technology and software support is only one side of the solutions picture. AMS believes that without the organizational design and structure to support an enterprise effort it will surely fail.
Best Practice Implementation Considerations
The following are the basic components that comprise supply chain management. Supply chain management software should handle each of these well. But, the process and structure standing behind the technology solution represents its underpinnings.
- Planning – Supply chain planning consists of developing benchmarks to monitor the supply chain for optimal resource use, minimum total cost, and maximum value to the customer.
- Sourcing – Supply chain sourcing entails developing the costing, inventory, quality, shipping and payment methods with suppliers and associated benchmarks for monitoring partner relationships.
- Production – This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.
- Delivery Logistics – This component of supply chain management deals with order tracking and fulfillment, determining warehouse locations, fleet management, and invoice processing. This can be quite a complex operation to manage well.
- Returns Processing – The critical component of supply chain management that deals with customer returns and customer support.AMS can design a complete readiness assessment to help your company identify the attributes of SCM that will create the most risk and reward respectively. Out team can then assist in designing an implementation plan and coordinate all of the deliverables associated with the enterprise effort. Additionally, AMS can custom design training to help each area of the organization understand the SCM concepts and prepare for the shift in operations.
Best Practice Summary
AMS will work with your organizations SCM team to help craft an organizational solution that will work. The SCM concept used to be directed at multi-national organizations and focused on the “depot” mentality. In the modern “globalized” business environment companies must consider, people, process, technology, and organization to optimize the value within the supply chain.