Introducing a New Product Line? – Use Supply Base Management Services
Sometimes achieving operational efficiency and savings, together, can be a constant battle, considering the amount of money and effort that goes into planning and procurement. And, this is especially true when the organization is planning to introduce a new product line.
What is required here is a major shift in strategy to accelerate the product line and deliver at the expected time-to-market; and of course, realize high cost-benefits and ROI. The shift in strategy can be through establishing partnerships with supply chain management companies to keep the planning and procurement initiatives on track.
Supply base management experts establish partnerships with other suppliers to manage the client organization’s supply chain activity for the new product line. They are able to assure excellent cost, quality and on-time delivery because of the close business relationships they share with their suppliers. Also, they are able to meet new procurement demands because they have access to pre-existing catalog of components that can be used to procure the required materials.
Using the services of supply base management experts can enable client organizations to ensure that their products are always competitive and meet the current market demands.
The following are some of the important supply base management processes that are offered by expert supply base management companies:
1. Material Planning and Procurement; Domestic and Offshore Sourcing;
2. Turnkey Materials; Consigned Materials; Vendor Managed Inventory
3. Supplier Qualification and Certification
4. Kan/Ban
5. Lifecycle Management
6. Web Based Inquiry and Reporting
Organizations need to realize that the fastest way to improve operational efficiency and increase returns is to outsource procurement/planning activities to supply chain consulting services. Making this wise decision will definitely aid in creating the required market base for the new product line.
(ArticlesBase SC #1010583)
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Organizations are facing challenges related to their supply chain processes and many these challenges need to be addressed immediately to help retain the current market leadership of their products.
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Sitting on your island and doing the things you need to do might have worked for some decades! In modern times it is all about cross-functionality and interaction. Unfortunately still too many companies are only looking for cost-reductions and improvements in a silo mode. Functional areas like human resources, finance, IT, sales & marketing, manufacturing, research & development are treated in a unique way without building the required antennas amongst each-other.
Supply chain management is a three-step process of procurement of inventory and raw materials, converting them into finished products and finally, distribution to all selling points. The entire supply chain process depends on prompt issue of materials so that the process does not deviate or lag at any point of time.
Supply chain is an end-to-end logistics operation, which is usually outsourced to external agencies. In spite of the growing number of supply chain consulting companies, challenges such as lack of visibility, reduced control over the process and general management issues continue to overshadow their operations.
Only an efficient supply chain process can effectively implement all requirements needed for successful material conversion, i.e. from inventory stock to the consumer. With the use of consumer goods increasing considerably in the last decade, it is a wise and cost-effective option for manufacturers to partner with leading supply chain consulting companies.
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