Sourcing and supplier management
Sourcing of materials, fabricated parts, software, tools, assembly line components, IT and networking hardware, electronics and embedded supplies and so on require an efficient methodology for supply and supplier selection, supplier management, inventory management, cost reduction, quality management, discount benefits on bulk buying and predictive understanding of future needs such that all of these elements can be aligned on project start without too much delay. Companies can lose significant monies and time without a well thought-out supply chain and inventory management. Supply arrangements must be periodically reviewed for improvements, weeding out poor suppliers and bringing in suppliers that provide better service and better cost. Similarly, inventory management must be periodically reviewed to ensure that excess inventory is not purchased and stored in anticipation of future business, sufficient inventory exists for obsolete or long-lead parts, and inventory management software is efficient and up-to-date at all times.
Our services
- Review of existing supply management policy and practices with recommendations on improvements
- Review of Just-in-Time (JIT), Total Production Management (TPM) and Total Quality Management (TQM) practices of the company
- Review of key suppliers in the context of value for money, and service issues
- Risk assessment on obsolete components, or supplies that are about to become obsolete
- Review of project delays caused by supply chain issues in the past with lessons to learn
- Review of inventory management software in the context of its adequacy to meet company needs
- Connecting businesses with better overseas and local suppliers to improve their operations
- We generate a “Migration Strategy for Supply and Inventory Management” in consultation with key stakeholders for the businesses as a written report that highlights areas of change with a time based methodology to implement it.
Our approach
The majority of companies have dedicated supply chain suppliers, routes and supply management practices which often remain unchanged for years because of the following reasons:
- Trust on existing suppliers built over time
- Limited knowledge of other global suppliers in the area of their work
- Too much dependence on certain suppliers because of their unique offering or monopoly
- Difficulties in getting good services from suppliers that are overseas or geographically distant forcing them to use local suppliers
- Limited understanding of IT delaying migration of their existing inventory management systems to better ones
We understand these issues and also the risk associated with not improving supply management systems and practices. In our approach we work together with businesses to create a “Migration Strategy for Supply and Inventory Management”. We believe that only a comprehensive strategy of this nature which recommends changes against current and future product lines and services will be able to make a genuine difference to the business. The strategy is implemented as a project with resources, timelines, deliverables and project management. We can perform future appraisals on how successfully the strategy is being implemented.
Issues you may be facing
You may be interested in evaluating supply practices if:
- You feel that you are not getting the best value for money from your suppliers
- The quality of service, e.g. timeliness, warranty, returns, and quality of components themselves do not meet your expectations or quality standards
- You need a pool of suppliers to choose from with the best offering but your pool is limited
- Suppliers are not meeting your timelines delaying you projects
- Inventory gets lost, stolen or becomes obsolete too quickly or too often
- Duplicate inventory is being purchased, or volumes purchased miss out on discounts associated with minimum order quantities
- Inventory storage methods are inadequate
- Logistic and import capability to use foreign suppliers is inexperienced
- Your machinery and tools are getting legacy and cannot use latest components or technologies
- Project teams complain about limitations with inventory management software and blame it for poor project outcomes