Supply chains are the next major manufacturing challenge

2 mins read

It’s tough out there. International competition is forcing cost-downs but demanding more agile and responsive operations in the struggle for customer service. That puts lead times, batch sizes and inventory under even more pressure. None of that is new, but given that the cost-cutting and efficiency improvement in businesses and on factory floors have largely been done, we need a new solution.

That solution is a better supply chain, and it means we need to think differently about our core IT. As Guy Dunkerley, formerly IMI Norgren director of European logistics, now research director with analyst AMR Research, says: “Compartmentalisation of manufacturing is no longer valid – in either business process or system terms. It isn’t about supply chain or production systems any more: manufacturing has to be a constituent part of supply chain solutions.” There are various names and models for the ideal: demand-driven supply network (DDSN) is one; lean supply chain is another. Both recognise the importance of collaboration with suppliers. Both focus on sustainable improvements through visibility, for big-picture planning and real-time scheduling. Both also both seek to enable near optimal synchronised execution – also helping all parties to manage change due to events in any business and production floor. And both are founded on the concepts and methodologies of lean thinking in tandem with modern supply chain systems and technologies. Most importantly, those that have done this well show that lean supply chains deliver tangible hard benefits. Top among those are: Slash lead-times Reduce direct and indirect costs Reduce excess raw, WIP and/or finished goods inventories Transform poor supplier reliability into collaborative operations Get flexibility all the way through manufacturing Achieve best-in-class customer service ratings Make frequent fire-fighting and expediting things of the past Gain valuable and workable role-based visibility and control Make multiple product options and complexity manageable on the fly Get early warning of issues before they become crises Transform operations, distribution, customer service and competitiveness But how do you do this? What does a lean supply chain look like? How do you move from where you are today, to a lean supply chain that fits you? Those and other questions – like what’s hype, what’s reality, what are sensible priorities, who should be involved and what do I need to do to my IT – will be addressed by the panel of experts on the morning of the MCS Forum on 13 April at the Gaydon Motor Heritage Centre, Warwickshire. On the panel are: prof Dan Jones, world-renowned lean thinking guru and author of the book, ‘The Machine that Changed the World’; Ken Douglas, technical director, BP; Carl Powell, supply chain practice lead, Unipart; David Marsh, global strategy and business architecture manager, Diageo; Mark Shaw, supply chain practice director, Deloitte Consulting; Dave O’Reilly, head of manufacturing and purchasing systems, Jaguar and Land Rover; and Stuart Facey, vice president TrenStar. They will be discussing best techniques, business processes, technologies, IT and practices for stripping time and cost out of supply chains across the industry sectors, company sizes and manufacturing types. You will get the benefit of their experience and that of your peers at the event – all geared to helping British manufacturing more competitive through better business processes, supplier relationships and performance, and IT.