In a perfect world, supply chains are seen but not heard. This doesn’t mean that supply chain professionals should take a backseat in strategic discussions; in fact, they need to be involved every step of the way. However, supply chains rarely get any attention – except when things aren’t running as they should.
Management theory is full of fads – remember business process re-engineering or matrix management? While these fads start off with good intentions, a hallmark of a management fad is that the program (often being sold by consultants) has little in common with the original approach. As such, results may be missed and, in many cases, organizations go back to the way things were done before.
OEMs face no shortage of challenges when it comes to executing their research and development (R&D) projects on time and under budget. To make matters worse the pace of innovation is only speeding up, be it through new production techniques, materials, or the seemingly unstoppable creep of technology into every corner of life.
When it comes to managing supply chains, the focus is often on price. However, price is not the same as cost. In fact, the hidden costs of a product are where much of the non-value add in your metal fabrication purchases often hides. With that in mind, here are four reasons why your cost is more than just price.
When it comes to process improvement, there is no shortage of methodologies. However, one thing that is rarely discussed is what to do when those efforts fall short - even though you’ve probably seen this happen quite a few times in the past, as most improvement efforts can fail to meet their targets.
For some companies, managing their OEM supply chain is akin to herding cats. It doesn’t matter if you're making a high-volume, low-cost product or a highly-customized, project-based manufacturing ecosystem; the challenges of keeping everything running smoothly can often be too much for even the best supply chain manager.
Why does this happen? In most cases, it is because the organization doesn’t value the strategic importance of their supplier partners. However, it does not need to be this way if you can take back control of your supply chain.
While tax reform was good news for CEOs, it turns out the that pressure never lets up for supply chain managers. That’s right, you still need to look for ways to improve on-time delivery, inventory management, and reduce costs.
Supply Chain Management is chock full of buzzwords. Elastic, enterprise mobility, cost to serve, and nearshoring are examples of the rush to embrace ‘silver bullet’ solutions for everything that keeps managers up at night. While there is always an element of truth to these buzzwords, the reality is that many of these phrases oversimplify the evolution of manufacturing.