Supply Chain Consulting 

 

 

 

The Supply Chain Consulting team has a very specific focus on Small and Medium enterprises (SME), who, in order to survive in a speedily globalising supply environment need to embrace modern supply chain practices.

Strategy

Supply Chain Strategy follows overall business strategy, which informs what the supply chain is expected to deliver.  Decisions regarding changes to sourcing partners, production plants, distribution centres, transportation practices and stocking strategies all have an effect on total cost on the one hand, and customer service levels on the other.  Strategic considerations include amongst others, the following:

  • Capital available for Supply Chain investment.

  • Supply Chain Risk.

  • Optimal facilities, locations.

  • Order fulfilment lead time, and other customer service targets.

  • Inventory strategy.

  • Operational expense budgets.

  • The role of Outsourcing as part of the Supply Chain strategy.

Outsourcing

An independent unbiased evaluation of the economics and rationale for outsourcing some or all of the client’s warehousing and/or distribution activities to third party logistics providers (3PL’s) includes the following core activities:

  • Does it make sense to outsource or outsource your warehousing and distribution requirements?

  • Identify and involve 3PL vendors most suited to your industry.

  • Development of RFP’s in order to cover all eventualities.

  • Identify 3PL vendors most suited to providing the required value added services required.

  • Determining the scale of outsourcing – geography and functions.

  • Determining the span of control of functions for each party.

  • Evaluation of the long term and short term economic impacts of the outsourcing decision.

  • Identification of the risks involved in the outsourcing decision.

  • Evaluation of existing 3PL relationships.

Procurement / sourcing

Good inventory management is a critical success factor for any manufacturing or trading concern.  All too often does you find yourself in a situation of being understocked in high demand items or overstocked in low demand items, sometimes both?  This unfortunately leads to lost sales and eventually customers.  As part of the Supply Chain analysis, the following areas of the sourcing and purchasing functions are evaluated:

  • Opportunities to improve purchasing performance ie. Gross Margin improvement.

  • Optimal inventory levels and inventory turns.

  • Forecasting and planning software evaluation.

  • Optimal sourcing strategies, specifically channels (direct, distributor, internet).

  • Buying strategies.

  • Supplier reliability and lead time variability measurement.

Facility design operations and productivity

Facility design, layout and operational processes have a direct impact on productivity.  An important part of any Supply Chain analysis is to determine if physical facilities are contributing to productivity and the possible impact of reorganization or modernization on the effectivity of operational processes.  The following aspects are of importance:

  • Capacity determination and ensuring optimal utilization of facilities.

  • Optimal warehouse layout

  • Possible efficiency improvements in any of the current operational processes.

  • Evaluate current materials handling equipment and determine suitability.

  • Explore automation opportunities.

  • Improvement of order fill rates and turnaround times

  • Reduction of defects / waste

  • Measure and address Labour productivity issues.

  • Recommend new build or redesign of existing facilities.

  • Facilitation of new facility design, vendor selection and evaluation.

Transportation

Transportation represents a large and very visible part of the Supply Chain, and usually the largest investment in fixed capital as well as operational expenses.  Various configurations of in house service providers and external third party logistics providers (3PL’s) can make up the transport landscape.  The following are some of the aspects to consider when determining transport strategy:

  • Opportunities to reduce total transportation costs.

  • Optimization of in-house fleet utilization and routing.

  • Consolidation and 3PL strategies.

  • Drop shipment and cross docking opportunities.

  • TMS systems to improve transport planning, execution monitoring and visibility.

  • Improved coordination of inbound and outbound transport activities.

  • Carrier identification for backhaul rates opportunities.

Excellence

Excellence has everything to do with putting it all together, ensuring that the client understands his Supply Chain, by putting in place the necessary reporting structures with appropriate targets, aligned to achieving the stated Supply Chain strategy.

  • Measurement.

  • Formalizing and entrenching new policy and procedures.

  • Benchmarking.

  • Customer experience optimization.

  • Operational expense control.

  • Team / talent management.

 

Technology

Which supply chain software should your company consider to better manage your customer service, order management, purchasing, forecasting, warehousing and transportation management?  Systems taken into consideration during a Supply Chain analysis.

  • Purchasing and forecasting systems

  • Warehouse Management Systems

  • Transport Management

  • Labour Management Systems

  • Yard and slotting optimization management.

  • Customer Relationship Management.

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Tel: +27 12 746 7456

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