Supply Chain | The Science
The Supply Chain
A single or multiple supply chain is an elegant orchestration. When you analyze it live at both a macro and micro level you begin to understand the causality on your businesses health.
We study then prescribe adjustments across one or several supply chains which helps optimize the existing investments and infrastructure.
A global manufacture was consistently adding/extending debt for working capital. The structure of the debt helped maintain operations however was a burden on expansion and investments in innovation. They needed to fuel R&D which has a ROI on research around 24 months.
Why did the profit on operations not provide adequate cash flow?
Common issues in established companies creates an compounding and cascading effect. This shows up as labor costs (adding more people to solve problems) which in turn decreases business speed.
Demand forecasting, materials buffers, resource availability and productivity. The outcome of these pain points presents themselves on the Balance Sheet, Income Statement and Cash Flow (Working capital).
Always working on the supply chain means you are solving our businesses fundamentals. Leaving you and room to innovate, expand and absorb unforeseen.
Day-to-day Pain Points:
Demand forecasts are arriving directly or indirectly though distribution channels (networks). When committed late, with errors or have over/under estimation you begin to experience oscillation inside your companies supply chain.
You now added labor cost, and time investment to adjust to these errors. The buffers you add while solve the immediate challenges have provided a Even when solved the cost is absorbed but the oscillation does not dissipate until that event has been resolved.
An oscillation at onset continues long after the issue was introduced. It continues and then cascades into Functional groups and there activities. It is assumed to be concluded with finished goods shop and receivables payed. However it is not the case.
A Supply chain is only as strong as its connected entities. It is truly an eco-system where every partner can strengthen or weaken it.
Up or down stream are all affected in specific ways. So lets unpack these outcomes and explain.
Unpack | Explore Pain Points
Orientation | Extract From Thesis
Here we will get you aquainted with a few concepts. Each perspective and business approach we explain a Supply Chain and root causes and outcomes.
Our thesis reveals the reality. Human-to-human, System-to-human, System-to-system and System-to-human each contribute to the oscillations through a series of human errors, business integration and or business language non standardized.
This can be seen in simple routines between 2 people.
It can also be reviewed across functional groups to reveal cause and effect in business health.
Colors represent Functional Groups. Each group has a set of Activities which are carried out by Roles (people assigned responsibilities)which feeds into the businesses workflow. The activities within each have a productivity level required to achieve current speed. Accuracy and pace are based on natural human error and supply partners and employee (IDL and DL) capabilities.
Each color is the start and end of an Activity or Function groups workflow.
Perspective: RFQs or Orders) arrive by way of Business development or Production planning (respectively). A virtual workflow clock starts on that single thread of chained activities. It is a workflow with 2 or 45 tasks across functional groups.
In this example
The light grey simple mean its inactive or status-quo. For example purposes we will highlight activities before and after materials enter and are retained in inventory (of Balance Sheet, Raw Materials) accumulation due to re/miss/risk-orders on commodities.