While drilling down on asset utilization, it is important to identify all the resources of an organization- be it fixtures & fittings, plant, machinery, inventories and people- and assess the efficiency or utilization of each of them. This includes deriving the accountability alignment to business units, so that we can drive the improvements needed. Aqua MCG understands the significance of all these elements in the broader scheme of things, and possesses expertise to make vast improvements in all. And it doesn’t stop there. We take responsibility for implementation, assuring that decisions taken are properly executed even at the local level.
Inefficient utilization of warehouses, transportation vehicles and storage facilities is one of the biggest sources of revenue loss for an enterprise. It weaves an intricate web of many other issues, which threaten all the operational processes of supply chain. Needless to say, optimal asset utilization will help drastically reduce total supply chain costs especially in view of increasing capital costs like rising fuel & real-estate prices.
In this aspect, integrated technological systems play a key role in proactively anticipating and taking corrective action in close to real time. Some of the enablers are automated data collection & monitoring, tracking, maintenance programs, dashboards and portals. It is also important to look beyond the physical assets of the supply chain, and link this to customers as well. Establishing joint goals & metrics by which to measure improved asset utilization is another approach to customer-focus.
We help identify KPIs (Key Performance Indicators) for all these elements and study the performance against each. This helps us benchmark companies and arrive at best practices, which with a structured framework can help companies attain superior performance. Co-incidentally asset Utilization forms one of the top strategic actions that Best-in-class companies adopt to drive down costs and improve overall financials.
Understanding asset utilization also involves understanding aspects like demand visibility, flow of market intelligence, information technology, optimization exercises, warehouse designing and so on. It involves many tools, capabilities and metrics. Asset management best practices should be standardized across the enterprise, with the ability to implement at all levels.
With proven expertise in the SCM field, Aqua MCG understands the nuances of product mix, improvement in material handling processes and many other elements that will lead to optimal asset utilization and maximization of profits for our clients.