OE | Supply Management
Operational Excellence | Supply Management
In our most recent blog we look at the eleventh (of 15) main KPA that forms part of an Operational Excellence programme - Supply Management.
Supply Management
Supply management affects manufacturing in a variety of ways, from both a daily operational, and a strategic perspective. It is an important aspect of manufacturing, impacting processes such as the availability of inputs needed for production processes, costs and profitability of manufactured items, company infrastructure and ways in which companies interact with their suppliers and customers.
Avoiding Higher Prices
Effective supply management ensures that raw materials consistently arrive at manufacturing production facilities on time, in turn preventing the need to source additional materials from alternative sources, subsequently avoiding higher prices and preventing lower profitability.
Support Training Programmes
When looking to assess your supply management, first you need to ensure that your buyers have the necessary skills, targets and supporting training programmes in place. You will need to review how your purchasing system integrates with your production and maintenance planning. When selecting your suppliers, you need to ensure they are fully Quality, Cost, Delivery, Development and Management (QCDDM) evaluated and that these objectives are reviewed regularly. You also need to ensure you are benchmarking your existing suppliers to ensure you are getting the best value while also monitoring your customer satisfaction levels.
Achieve Optimum Efficiency
Management of both company infrastructure and supplier and customer integration within supply management can enable manufacturers to achieve optimum efficiency within all their production processes, allowing them to remain competitive within the global marketplace. Additionally, manufacturers implementing continuous quality improvement programmes, can initiate changes to wider reach supply-chain dynamics, encouraging collaboration with customers, suppliers, distribution systems and transportation contractors.
If you are looking to transform your supply management to remain competitive, then you may need help in establishing robust systems with essential training.
The first step to achieving this is by completing an Operational Excellence programme.
eBook - First Steps to Operational Excellence
To read an overview of all 15 KPAs, download our eBook and find out what the first steps are to achieve Operational Excellence, and how you can take them…
