Supply Chain Excellence
While developing excellence strategies, an often ignored element is the impact the organisation’s supply chain has on its long-terms competitiveness. Toyota follows a simple v4L principle to manage its supply chain i.e. balancing variety, velocity, variability and visibility across its supply chain. A careful choice of v4L parameters enables superior supply chain performance. One way for managers to understand the idea of Supply Chain Excellence is to first ask how their company’s supply chain achieves this balance. Often, variety is chosen with a focus on marketing benefits with scant attention to supply chain implications, velocity, variability and the like. This off-optimal choice of variety can have severe repercussions across the supply chain, which is often difficult to untangle.
What We Do
At SSA we understand that each organisation is unique be it in product portfolio or market conditions it operates in. We therefore develop unique customised solutions for our clients that factor all these variables and is optimal to help the client achieve its objectives. We have consulted with clients in far flung and challenging markets across Africa, Middle East and South Asia helping them evolve unique supply chain solutions. Through our work, we have enabled clients to achieve industry leading service levels while maintaining benchmark levels of inventory turnover while reducing overall supply chain cost. SSA’s approach involves a blend of Extended Lean Value Stream Thinking and Theory of Constraints inventory management systems.
How We Help Clients
Traditional supply chain systems work on a ‘Push’ system with limited linkage between what is sold and what is produced. Therefore as a first step, we establish a ‘Pull’ system for inventory management. The aim is to create a link between market demand and factory production. This change is enabled through elements of inventory buffering and reordering norms through deep understanding of demand and stocking requirement to setup suitable inventory levels; Feedback system for stock consumption and monitoring as a ‘Kanban’ link to help communicate ‘real’ customer demand back to production; production Level Scheduling linked with stock movement; and Monitoring of KPIs to ensure timely feedback and corrective actions; and last but not least, Cultural shift, which forms the foundation for sustaining the gains.