|
Supply Chain Management
Supply Chain Management (SCM) is of relevance to any manufacturing and/or trading organisation. With liberalisation, competition has increased, bringing margins of companies under pressure.
As such, most management boards are faced with the need to:
- Capture and retain market share
- Align products and services to meet / surpass customer expectations
- Ensure cost competitiveness
- Optimise service levels
An organisation may proactively opt for consulting services when they foresee a shift in market / industry dynamics. More often, companies are alerted about their sub optimal performance through market share / profitability decline.
Supply Chain Management identifies the key competitive differentiators (for example customer service, cost, quality, customisation etc) for an organisation and then designs / adapts the supply chain to deliver this competitive weapon. Total supply chain management optimises the relationships in the chain to drive out waste and unnecessary cost, reduce lead times and increase responsiveness. Supply chain management includes aspects related to supply chain strategy, as well as supply chain processes.
The supply chain management group aims to deliver sustainable improvement to the bottom line by assisting clients to:
- Build supply chain strategies
- Implement systems to plan, execute and optimise supply chain activities
- Enhance collaboration and integration with trading partners and e-marketplaces
- Align business processes, roles and responsibilities to supply chain operations
- Design and manage infrastructure such as distribution centres, manufacturing plants and transportation networks
Supply chain strategy, typically includes topics such as:
- How should products and markets be categorised, so as to define their supply chain requirements - for example, new products might need significantly different supply chains, as compared to stable products; premium products' supply chain requirements would be distinct from mass product supply chain requirements
- Which suppliers should be built up into strategic alliance partners, and which should be transactional relationships
- Whether to go for centralised or distributed manufacturing
- Where to manufacture, what quantities and which markets to service from each manufacturing site
- Whether to opt for owned, contracted or leased facilities (manufacturing, transportation, warehousing)
- What kind of distribution network should be designed for various categories of products and target markets
- How various technology options (including the internet) should be leveraged to improve supply chain performance.
Supply chain processes include aspects such as:
- Designing planning processes (frequency, planning buckets, responsibilities, modalities etc.) which should be followed for sales, despatch, production and procurement
- Defining policies that should be followed for procurement, production and quality assurance, inventory management, inbound and outbound logistics and sales (including sales force management)
- Alignment of departmental or functional objectives with organisational aims, through rationalisation of roles, responsibilities, performance measures and reward systems
The KPMG approach to SCM draws upon our proprietary methodology for Business Performance Improvement. Aspects from various methods, tools and techniques such as Activity Based Costing/Management, Change
Management, IT Strategy are also incorporated into the approach.
Client deliverables typically take the following routes:
- Supply chain strategy to be adopted for specific products / markets
- Processes, policies and procedures covering vendor management, procurement, manufacturing and quality assurance, sales, distribution, inbound and outbound logistics
- "Quick Hits"
- improvement initiatives which do not involve significant time
-cost investment from either the client or KPMG - are identified and implemented in the course of the initiative.
 Top
For further details contact
us
|
|
|
