MODERN DISTRIBUTION MANAGEMENT: DON’T JUST CUT WASTE: CREATE VALUE
Modern Distribution Management’s Rick Harris suggests increasing communication to increase value in the supply chain and reduce inventory. “It becomes easy to create value by simply creating communication that flows along all links of the supply chain,” Harris writes.
Modern Distribution Management Excerpt:
Now is the time when manufacturers and suppliers should be looking at their supply chain together and creating value, not just cutting waste.
When times are good, and the volume of business covered inefficiencies, it was easy to capture cost savings by picking the low-hanging fruit. It becomes easy to show the value of integrated supply with a lot of small wins such as reduced inventories on high-moving items or increased production on long-running manufacturing operations.
The projects that become “high-priority” may, during the good times, mean less to your bottom line and more to the overall visibility the project has around the facility.
Well the good times are not as good as they use to be, and now is the time to dig deep for projects that will mean the most to the shareholders, the bottom line, the profit center and the overall budget. But it’s not about price.
So if it is not about price, then what is it about?