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Supply Chain Managment

Leading companies understand that financial returns and competitive advantage is highly dependent on the effectiveness of their supply chains. An overwhelming majority of businesses recognize that supply chains are critical to their success. If you look at industry leaders (Dell, Wal-Mart, Toyota, P&G, PepsiCo), they all have highly efficient and connected supply chains compared to the laggards (IBM, K-Mart, GM, Kimberly Clark, Sara Lee). In fact, IBM was forced to sell its PC business to the Chinese because they could not compete with the lean supply chains of Dell and HP. K-Mart entered Chapter 11 and repeatedly disappointed investors due to under=performing supply chain operations when compared to Wal-Mart. GM loses market share at a rate of approximately 1% per year while Toyota is poised to overtake GM as the world’s largest car manufacture in the next year or two. Supply chain management is a core business strategy for each industry leader.

Your company can also perform like the Dell’s, Toyota’s and Wal-Mart’s of the world. There is no secret sauce for the leaders. They simply focus on a few key fundamentals, namely:

  • Design supply chains into their business strategies
  • Keep customer satisfaction and differentiation at the forefront of supply chain operations
  • Relentless focus on reducing lead time and improving flexibility (order processing, manufacturing, distribution, transportation, warehouse operations and logistics) by using process integration, lean manufacturing techniques, postponement, information technology, best practices, performance measures and supplier programs
  • Integrate processes, organizations and information across the supply chain network to eliminate disconnects 

  • Outsource selective business and supply chain processes to obtain improved service levels and minimize invested capital
  • Develop suppliers and hold them accountable for cost, quality and delivery performance
  • Create a culture that embraces change, innovation, best practices, and continuous improvement
  • Execute flawlessly

World class supply chains become productized and are emulated. The “Dell Model” and “Toyota Production System” have become the gold standard for lean supply chains. Many small companies have adopted and utilize these same techniques. The techniques are not sophisticated or costly to implement. The successful small companies have simply not publicized the results and do not receive the same accolades as Toyota, Dell and Wal-Mart. Therefore, with the right leadership, knowledge and focus, any size company can develop differentiated supply chain capabilities. 

NEXus deeply experienced supply chain professionals can assist your company develop a leading supply chain to dramatically improve business performance. Nexus Marketing professionals specialize in reviewing, developing and implementing capabilities in the following areas:

  • Supply chain review to determine and prioritize high-payback areas of opportunity
  • Supply chain strategy and process design
  • Linkage with customers
  • Supply chain planning (sales, inventory, and operations forecasts and plans)
  • Inbound and outbound transportation
  • Order fulfillment
  • Lean manufacturing
  • Plant start-up
  • Warehouse/Distribution center location and operations
  • Inventory management
  • Procurement and sourcing
  • Supplier development programs
  • Supply chain performance measures
  • After sale service and spare parts
  • Reverse logistics (warranty and returns)
  • Make versus buy and insource versus outsource decisions
  • Six sigma

The benefits of implementing supply chain capabilities can be significant. We have experience delivering substantial value. Typical results include:

  • Revenue enhancement of 10 to 20 percent
  • Cost reduction of 10 to 25 percent
  • Lead time reduction of 75 to 90 percent
  • Quality improvement of 50 to 75 percent
  • Order fill rate improvement of 70 to 90 percent
  • Reduction of inventory by 50 to 75 percent

We invite you to learn how Nexus Marketing professionals can develop a world class, high-performance, highly integrated supply chain management system for your organization.Please click on the contact button below; complete and submit the contact form and a Nexus Marketing professional will get in touch with you promptly.

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