Services »Capabilities »Process Improvement
Process Improvement
A company’s supply chain management system faces some typical problems with its distribution network and / or strategy, inventory management, information management, or organizational design. To achieve tighter control over the supply chain, some of the processes may also need to be altered. Aqua MCG looks at all the internal and external processes of an enterprise that may have a bearing on the supply chain, and recommend suitable changes to attain optimum efficiency.
Supply chain process performance bears a high correlation with that of the business as a large part of the firm’s processes fall under supply chain domain. Supply chain process improvements and re-engineering thus becomes a major source in extracting cost reduction, elimination of complexities and reduction of turnaround time. Issues which the firms face with respect to process improvements are:
Alignment of supply chain processes to achieve firm’s strategic goals and higher customer satisfaction
Identification of the non overlapping processes (triggers, inputs, outputs) either according to the flow of goods or information or finance and their linkages with the upstream and downstream process
Assigning ownership of the processes from amongst the various department in the firm
(Non) existence of performance indicators to measure the performance of each of the supply chain processes
Lack of integration of the various firm’s processes which are organized functionally that leads to planning and execution being done separately for each supply chain function
Lack of understanding of the overall supply chain process which leads to quick fixes affecting the upstream/ downstream processes
Identification and elimination of the non value adding steps/ roles through the lean methodology and tightening up of the execution of the processes through six sigma methodology
Assessing the impact of the proposed process
Last Updated On:10/14/2008 8:59:30 AM
|
Industries »Chemicals & Fertilizers
Chemicals & Fertilizers
Chemicals and Fertilizers industry have their own set of characteristics which make their supply chain unique in many ways. Commoditization of products which leads to no products remaining unique for long, globalization putting pressure for cutting costs, hydrocarbons and energy cost spikes, retailers and consumers demanding lower prices, environment – health - safety pressures continuing as strong as ever, are some of the challenges which the industry faces today. To meet such challenges and remain competitive, supply chain of such industry needs to be responsive and optimally designed.
Plant operation is one area where there are lots of inefficiencies prevailing. Even the best plants do not have more than 80% of capacity utilization. Much of the capacity in the reactors, tanks and storage houses remain empty throughout the year. Supply chains of these firms are full of redundancies leading to a lot of duplicate assets, working capital and extensive time and human effort. Sourcing has become a critical activity which acts as the driver of high performance. There is a need to conduct strategic sourcing initiatives and using supplier management methodologies to build relationship with the suppliers. Chemical companies have to develop distribution networks to meet the service commitments they've made to their customers while minimizing inventories. They may also have to work within the structural constraints of their business, being far from customers and raw materials and utilizing older, more expensive production assets.
We at Aqua MCG realize that there are no easy fixes to the challenges offered by the industry but with our expertise and understanding of the issues plaguing the industry, we are confident to provide solutions, adding value wherever we are engaged.
Last Updated On:10/10/2008 7:50:54 PM
|