According to this article by Eric Whitley at Supply Chain Digital, in today's fast-paced manufacturing landscape, success hinges on a plant's ability to hit high levels of productivity. And several factors contribute to such success but there is one critical aspect that cannot be ignored: supply chain management.
He says, and as Nucleus well knows, effectively managing a supply chain to increase productivity requires streamlining material flow, upgrading technologies, and improving communication between different parts of the supply chain. All of which can be achieved by partnering with a specialist 4PL Supply Chain as a Service provider, like Nucleus.
By streamlining materials flow from suppliers, manufacturers reduce delays and disruptions in production. Achieving this goal involves accurate demand forecasting, effective inventory management and coordination with suppliers to ensure the availability of raw materials as and when needed. Moreover, efficient supply chain management can empower manufacturers to optimise operations, minimise costs and ensure customer satisfaction.
According to a report by McKinsey, companies that effectively manage their supply chains can reduce lead times by 50 to 90% and achieve inventory reductions of 15 to 35%. These improvements lead to increased productivity and cost savings. Collaboration and coordination among supply chain partners are also key to driving productivity improvements. By fostering strong relationships and aligning goals and strategies, manufacturers can optimise the flow of goods and information.
Also, supply chain collaboration with its new approaches is a recent trend that has interested many researchers and manufacturers alike. The aim of better coordination between different parts of the supply chain is a promising productivity improvement step. That is, at least one of the reasons why Nucleus is a 4PL Supply Chain as a Service provider. And Nucleus would add key expertise to communications and technology. As our engagements work in four key areas to coordinate and optimize part or, even better, all of our client's end-to-end supply chains. We do this by focusing on the four pillars of supply chain optimization: revenue enhancement, operation cost reduction, working and fixed capital reduction.
Source: Supplychaindigital