Using an advanced supply chain management capability provides manufacturers and distributors with an exceptional degree of responsiveness, visibility and agility in their supply chains so they can cope in un-predictive conditions.

Today, an organisation is skating on thin ice if it does not monitor and re-design its supply chain annually in order to adapt to the changing environment.

In order to achieve best results, many firms now rely on advanced software solutions to improve their supply chain and to support continuous supply chain design. This method enables them to constantly monitor, measure and reassess their supply chain options in order to minimise risk and maximise return.

The key drivers in making supply chain design decisions include:

Asset and labour costs
Cost of capital
Depreciation
Plant and locations
Inventory
Purchasing costs and sourcing options
Cost of transportation
Delivery times
Currency exchange rates
Trade issue

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Without advanced supply chain applications, it is difficult to clearly evaluate all of the relevant factors simultaneously.

Manufacturers’ critical sourcing decisions will usually include:

Strategic Sourcing
Deciding which vendors to purchase from and how much business to purchase from them.

Buy Versus Make
Deciding whether to buy raw materials and make the products or to buy the goods already made. The most economical option will be chosen.

Danger of ‘set and forget’
A one-time-only supply chain design process isn’t effective in today’s hyper-volatile business climate therefore, the supply chain process needs to be visited and reviewed on a regular basis.

Your company does not just have a supply chain, your company is the supply chain. Your customers are only interested in the fact that you meet their needs when they want those needs met.

That is why Infor Supply Chain Management Software helps you design, build and continuously fine-tune your supply chains’ top performance at all times.

www.infor.co.uk
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