Supply Chain Solutions A fleet is only as fast as its slowest ship, similarly, an organisation is only as good as its worst supplier. During the past decade we have seen a major shift in supply chain management by the large procurement organisations. The automobile, defence, heavy engineering, chemical and pharmaceutical have moved from multiple sourcing to long term partnerships both down and across the chain.
However, in most cases this trend is still in its infancy and with the development of ever more sophisticated forms of ERP and the relentless drive towards stockless production there are big changes to come. This has resulted in companies driving their suppliers to move ever closer in order to reduce variation in delivery times due to unpredictable transport problems and the high cost of haulage.
Paradoxically, at the same time, the need to keep costs to the minimum is having the reverse effect whereby companies are outsourcing low value, high volume manufacture to the developing countries. In this respect, the next two to three decades will be interesting. This policy will result in the per capita income in the developing countries to rise, wage rates will increase with the result that localisation of supply will also gather pace.
In the short term, the developed countries would do well to concentrate on improving their lead in the more high technology aspects of goods, services and process management and eliminate deficiencies and costs through the use of Six Sigma, Design for Six Sigma and Lean whilst the developing countries must develop Lean to its ultimate degree.
The real advantage of Lean for the developing countries is the fact it does not require much capital investment in order to be able to compete with its higher technological rivals. For example, some organisations claim that through Total Productive Maintenance and related concepts, they can equal the performance of their newer plant with machines over 30 years old
DHi can assist by being amongst the world leaders in the implementation of Lean Sigma.
We can offer consultancy expertise down complete supply chains built on the following framework:
- Business Research Analysis
- Leadership Strategy Development
- Customer Focus
- Implementing Hoshin Kanri
- Business Process Re-engineering
- Implementing Total Quality
- Implementing Six Sigma
- Implementing Lean Manufacture
- Quality Management Systems
Ø International Quality Colleges
Ø Study Tours
Ø Training Products