Supply chain management in manufacturing

Posted on 25 Apr 2016 by The Manufacturer

The structure and processes of today's manufacturers have evolved; their supply chains are now built around complex and global networks, says HSO, a leading provider of innovative enterprise business solutions.

Building a strategy around monitoring the end-to-end supply chain offers a number of essential advantages:

  • Better customer service increasing retention and repeat business
  • Reduced overheads and operational costs through workflow automation
  • Ability to easily adapt to changing market conditions
  • Future business growth and expansion
  • Reduced IT issues through a more connected and controlled environment

HSO Manufacturing Line Robot Automotive imageIn order to keep customers happy and deliver quality products, when and where they want them, the manufacturing supply chain needs to be efficient and profitable throughout, which requires full visibility, tight management and continuous monitoring.

Supply chain planning doesn’t just happen, it requires work. To move forward, companies have to admit the mistakes of the past, implement continuous improvement programs to drive discipline, and carefully re-implement technology.

Planning is the first step in ensuring that sufficient stock is produced to meet demand. Determining policies and procedures to govern supply chain activities helps manufacturers keep up with changes and adjustments to daily or weekly schedules.

The second step is supplier relationship management. Identifying reliable suppliers and managing pricing, delivery and payment methods in the first instance,  followed by processes for managing their goods and services – receiving, verifying shipments, transfer of goods to manufacturing plants.

The next step is creating metrics to monitor the supply chain, enabling manufacturers to be flexible and keep ahead of the competition, improve forecasting, keep on top of changes to legislation or global events, meet global compliance standards; the list goes on.

Advancements made in Enterprise Resource Planning (ERP) technology and the impact it has on each link within the supply chain from planning and procurement, to forecasting and monitoring are critical in supporting supply chain complexities.

Each element will be more effective and efficient with the right technology in place to provide total supply chain visibility, in real-time.

Successful manufacturers know that their best chance of running a successful business is to have an ERP system that can adapt to individual business needs.

Are the latest ERP solutions reflecting the current manufacturing landscape?

Download our Supply Chain Management whitepaper to discover more

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