The Competitive Landscape and Supply Chain Demands
Supply chain expectations are changing as never before due to radical influences like e-commerce (e.g. Amazon), Big Data, Hyper-customization, rapid innovation, short product life cycles, and millennial mindsets. The supply chain planning strategies of yesterday will no longer achieve the optimization needed to compete today. In today’s competitive landscape…
- Competition is intense — “the meek” will NOT survive
- Customer demands are surgically precise – and the supply chain must comply
- Anything less than 99% service level (on time, in full) will not cut it
- Flexible manufacturing is a painful reality – it is consuming 80% of all resources
- Lead times are being crushed – as supply chains become more agile
…and based on this reality, it’s clear that streamlining and removing waste from your supply chain is no longer an option, it’s a necessity.
Having a Supply Chain Optimization Roadmap is the best offensive. So, what are the key milestones on the roadmap?
Securing a solid understanding of the current state supply chain processes and metrics
- Setting improvement targets for every supply chain function
Transitioning current organizational structures to operate ‘the Lean way’
- building line-level capability through execution of pilots (to secure buy-in from management and associates)
- developing lean leaders for the future through training/coaching
Measuring and reporting performance of cascaded goals at every work center
- functional leaders to be held accountable for action plans, improved metrics and coaching others
Resourcing high-impact projects
- cross functional teams
- support execution
Root cause failure analysis
- implementing corrective action,
Staying the course
- Lean is the “only way we work”
Productivity Innovation has developed a Supply Chain Roadmap that puts the science into Supply Chain Optimization. Understanding that the immediate ‘sweet-spot’ for improvement is outside the four walls of the operation, there is much to be gained by applying Lean principles to your supply chain.
Call today to learn more about partnering to kick-start your Supply Chain Optimization project.
Case Study
Lean Supplier Training
Company: Fortune 500 Automobile and Truck Manufacturer
Engagement: 5 years
Objective: Design and deliver 3-day Lean Manufacturing Awareness seminar globally. Build Lean manufacturing capabilities within first- and second-tier suppliers; global deployment of production metrics:
Outcome:
- Formation of Lean Leadership Resource Center Advisory Group
- Provided strategic and tactical direction for ‘Production System’ design and policy
- Designed custom training materials for Resource Center Lean training curriculums
- Established a Production Metrics Program
- Domestic on-site Resource Center Lean training of first- and second-tier suppliers
