Saturday, October 4, 2014

MANUFACTURERS STRUGGLE WITH SUPPLY CHAIN MANAGEMENT?

Too many manufacturers struggle with supply chain management.  And with that, they struggle to meet the supply chain requirements of their customers.  Supply chain management and lean have much in common--the pull, not the push; smaller lot sizes; compressing time; avoiding inventory waste; and more.

Manufacturers still operate much as they did 40 years ago.  They see logistics costs, "cheap" prices, and functions.  They do not understand the negative impact of such short-sightedness with regards to profits--as driven with higher revenue from competititve differentiation--and with inventory velocity and turns.  As a result, they are "penny wise and pound foolish".