How Effective Planning Can Lead to Supply Chain Optimization? What is supply chain management? Supply chain is primarily focused on delivering products and services costeffectively to the consumers. Effective supply chain is critical for any business organization today to succeed in the competitive marketplace. Supply chain management is the mix of processes and activities that involve sourcing of the raw materials or the components that the company needs to create the product and services and delivering them to the customers in the most effective manner. It involves three levels of decisions: Strategic, Operational and Tactical to be effectively. Properly implemented supply chain management can effectively streamline the operational objectives, reduce waste and overhead costs and tackles all the challenging issues. A renowned supply chain consulting firm such as Group50 can manage supply chain of all sizes and focus on various elements like distribution, logistics, cashflow, value, inventory, information etc. and carry out optimized supply chain management. Each of these elements is intertwined and optimization occurs when they drive increased profits, minimize working capital and provide shorter lead times that result in optimization. Powerful planning process optimizes the business performance and success through material management, waste management, lean operations and working capital optimization. Planning for an optimized supply chain is driven by:  Strategic objectives  Market value drivers
Business life cycle Vendor participation and commitments Key performance indicators Quality Total cost of ownership Strategic sourcing Distribution cost and effectiveness
Supply chain planning is the most important aspect of supply chain and gives proper foresight for all the “what-ifs” that are capable of occurring. Methods involved in supply chain planning are listed below: Data gathering Detailed and accurate data provides an insight into the supply chain. This allows business owners to make critical decisions sooner with precise data and figures. Lean principles Working on lean principles enable a decrease in inventory cost. The fulfillment of orders can be done successfully, completely eradicating the overhead costs. Increased visibility Effective planning gives operational visibility that allows handling of the inevitable losses in supply chain and in efficiently meeting the demand of production. Standardization A proper planning system in place promotes overall coalition and reduces the chances of mistakes in the future. Group50 offers complete supply chain management solutions and has the experience and knowledge to carry out effective planning and implementing it for supply chain optimization. They firstly understand how your supply chain is doing through their Supply Chain Effectiveness Assessment, and from there work with
the senior leadership team to develop an optimization roadmap. Visit: group50.com