OPERATIONAL EFFICIENCIES
part of procurement . But when taking a birds-eye view of your organisation , perhaps not in its entirety , depending on your company . Let me explain with an example .
Laura works for a manufacturing facility as a Procurement Manager . Part of her responsibilities is to manage anything that is procured , including the raw material supply chain . In this capacity , she mitigates risks and ensures all suppliers , including logistics partners , are working towards delivering the goods or services necessary to fulfil the production schedule .
However , depending on the company , Laura may or may not hold responsibility for the balance of things required for the organisation to meet its commitments to its final customers . The management of subcontracted parts , work-in-process ( WIP ) and outbound logistics are often part of the supply chain managers ’ job function and are key components to running lean and controlling costs . and missed customer commitments , hurting your brand and your dollars . Poor SCM can lead to increased costs stem from :
• Employee overtime
• Machine downtime
• Increased scrap rates
• Increased inventory levels
• Carrier wait fees
• Demurrage charges
• Customer chargebacks
Schedule attainment and optimisation are a vital part of optimising profits , and it ’ s often underestimated in its complexities and challenges . Changing course due to supply chain disruptions once a plan is in place comes at a cost . The list of issues that cause changes is a long one , from machine breakdowns to inaccurate inventory , to a late truck due to an accident . SCM helps to mitigate these risks .
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OPERATIONAL EFFICIENCIES
Inadequate supply chain management and procurement efforts are felt in decreased organisational efficiencies supplychaindigital . com