Supply Chain Optimization
Successful supply chain optimization for internationally active companies through the elimination of trade barriers, opening up of new markets, and technological advances is the basis for efficient work and economic success.
LNConsult is a global partner and know-how leader in supply chain optimization. The throughput time, cost, inventory, and quality requirements of individual markets are challenges for experienced supply chain experts. The goal is always sustainable supply chain optimization for more efficiency and success.
THE EXISTING SITUATION OF INDIVIDUAL SUPPLY CHAINS:
The entire value-added chain will be precisely analyzed, as will all processes/structures (goods and communication flows, number of players in the supply chain, etc.) and methods (degree of information exchange, key performance indicators, standards, etc.). This gives the logistics experts a complete overview and a clear understanding of the current supply chain.On the basis of the existing situation defined in Step 1, the quick wins and long-term levers available for the optimization of the individual supply chain will be systematically defined. In this way, the internationally experienced supply chain experts at LNConsult will recognize very quickly which levers the existing situation can be optimized by.
The possible and optimal measures will be determined and evaluated according to cost-benefit calculations. The measures will then be prioritized, and implementation of the supply chain optimization will begin. Optimization results are often visible in the supply chain after a short time.
Testing of Master Vendor Solutions
Intermediate players can be dispensed with for many product groups. For more complex services, (e.g. temporary work services), the possibility of a master vendor (also called third party management) will be examined. This is advisable when administrative cost savings exceed the additional cost of the master vendor. As a first step, the precise structures of processes in the existing supply chain will be ascertained.
Through our long-term partnerships, LNConsult can often skip intermediaries in the purchasing process at appropriate points. This often quickly and sustainably results in large savings potentials. The key question in the case of an intermediary is whether the intermediary's advantages (direct contact with suppliers, bundling of quantities, assumption of administrative tasks, market knowledge, and logistical abilities) exceed or fall short of the costs of involving the intermediary (marginal losses compared to direct purchasing). This will be closely examined by supply chain experts
Purchasing conditions can be further improved through skillful pre-negotiation. LNConsult therefore not only concentrates on negotiations with your direct suppliers, but also includes your upstream suppliers for important product groups. Also, the better upstream suppliers are informed about your specification requirements, the more likely it is that, for example, the complaint rate can be reduced and the supply chain further optimized.
MAKE OR BUY:
Within the framework of supply chain optimization, LNConsult will check the "make or buy" allocation. A supply chain is optimally designed if the individual steps of value creation are carried out where the highest competence is available for each step.
Specifically, it is important to examine whether activities are currently being carried out that a different player within the supply chain could perform better (for example, logistics services). At the same time, an analysis will be carried out to determine whether the purchasing is procuring items that could be more cost-effective to produce internally.
Selected materials and logistics processes in the supply chain will be purposefully optimized. This makes the supply chain more competitive, for example with overlapping IT solutions and integrative logistics concepts. Specifically, e.g. the minimization of the overall transport costs within the supply chain could be set as a goal.
An optimal inventory distribution can be made, e.g. through consignment storage, which ensures short distances between supplier and the customer. The lead time per order to the end consumer is also relevant. Supply chain experts analyze at which points in the process time passes without value addition or transport taking place. Subsequently, measures are taken together with existing partners to minimize this lost time.
Key performance indicators
By implementing and using key performance indicators for all workflows, the entire optimization as well as newly gained efficiencies in the supply chain becomes directly measurable.
In the course of optimization, standards will be established along the supply chain. A chain is only as strong as its weakest link - supply chain experts know that even errors occurring in the upstream stages of a supply chain can negatively affect the company.
LNConsult therefore increasingly relies on standards in the area of quality assurance and IT (IT links between different companies, as well as data security standards in information exchange, IoT the Internet of Things, etc.). LNConsult experts are constantly on the ball, especially with regard to data transfer and data security, so that sensitive information can only arrive where you have agreed.
INTERNAL INFORMATION EXCHANGE:
An intensive internal exchange of information within the company is necessary for successful supply chain optimization. In order to profit in the long-term from supply chain optimization, rethinking in many departments may be necessary.
Your production department would like to produce quickly and cost-effectively, while saving materials. The entire production process will be in focus here. The logistics department is interested in efficient, secure, optimized packaging for further transport. The transport of goods will be examined here. LNConsult supply chain experts bring the decision-makers from all sectors together to optimize internal value addition and to work optimally for the company.