Supply Chain Strategy
the key pointers
With a dynamic supply chain strategy, GTMA plays an active part in enhancing supply chain performance which includes dealing with Supply Chain Development, internal supply chain audits and external evaluation
Regardless of sector, Supply Chain efficiency continues to be the criteria by which suppliers are judged. However, Supply Chain Development must benefit all tiers of a supply chain thus creating the desire to enhance Quality, Cost and Delivery performance and embrace emerging technologies.
There is no doubt that waste caused by Supply Chain “Blockages” creates issues often beyond the control of an OEM, which can result in lost business for all participating companies.
It is a given that the OEM requires the highest standard of quality at the right price. In turn the supplier seeks a tangible profit margin and on-time payments, which will enable investment for the future, provide strong cash-flow and company profitability.
“Costdown” is part of today’s trading language, which often creates both performance issues and relationship barriers throughout a Supply Chain. It should be appreciated that not all companies that seek costdown are looking for process efficiency but a higher return on work subcontracted.
Costdown should always relate to the expectation of the customer/end user. What will they pay for the product or service and what is their expectation regarding delivery and quality? The Holy Grail is providing a solution within Supply Chains that provides benefit across the entire project linkage, that provides sustainable business.
Clearly Process Performance within each tier of a supply chain is vital when considering QCD but it is also of prime importance to the supplier when considering profitability and the evaluation processes of the customer.
Visibility of process has become part of the solution that OEM and Tier 1 companies seek to achieve with suppliers and should be encouraged, as it provides the supplier the opportunity to analyse process performance and therefore enhance profitability.
For the future, Cloud Computing will become more prevalent as it enables visibility from OEM to final tier via process software.
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