Supply Chain Optimization

Looking back at more than 500+ supply chain-related projects we have completed globally, across industries, we see three areas that process industries consistently focus on:

  1. Cost Reduction
  2. Inventory Optimization
  3. Plant Reliability

The three are so intertwined, that it is impossible to address any one of them without considering the links to the other two. In many cases, clients even seem to believe that you can achieve only two of the three – which we don’t agree with!

We firmly believe that all three are very much achievable, if organizations look at the holistic picture. With large organizations, teams tend to work in silos, leading to discussions being around which team’s perspective is ‘right’ vs. ‘wrong’. That is often when we come in as a catalyst to help organizations understand the real areas they can focus on to achieve objectives.

If we look forward, there is no doubt that the exact same three topics will continue to be a top priority in the minds of senior executives. Significant investments are being made by organizations into tools, technology and processes, but in many cases, the ROI becomes hazy as they go forward.

While supply chain managed services helps to keep businesses operating at its most optimal level, Supply chain network optimization is the key to keeping track of inventory and optimizing the supply chain.

Supply chain vendor management is the process that enables an organization to take correct steps for controlling cost, decreasing potential risks related to vendors, ensuring best service deliverability and deriving value from vendors in the long-run.

Our supply chain optimization services serve as a bonding factor for organizations, enabling clients to:

  • Reduce procurement costs
  • Optimize inventory
  • Rationalize suppliers
  • Manage spend efficiently
  • Improve plant reliability

“We enable organizations in identifying opportunities to reduce overall inventory costs”.

We help you achieve optimum inventory levels and maintain desired service levels, by adopting techniques like – reviewing replacement order sizes, and dynamic safety stock. Through our analytics, you can identify and monitor indicators like – inventory obsolescence, and stock churn.

Read More about Inventory Optimization

At any given time today there could be an industry that is doing well or doing badly, due to one of all the several reasons – lower demand, innovation in a competing area, government policies…, and most executives will tell you that their key challenge is managing ‘costs’ across the supply chain. Procurement function has not moved much in the years, barring – volume discounts, and negotiating low cost contracts. At OptimizeMRO we help clients go beyond that with – consulting, implementation, and ongoing support.

Read More about Procurement cost reduction

Typically, supplier rationalization would mean, to pick the correct suppliers and have the right number as well. However, in the name of securing strategic relationships, one often resorts to shrinking the supply base. At OptimizeMRO we know better that supplier rationalization also includes – changing the supplier mix, maybe even increase it sometimes. And reduce them too – based on objectives set by the organization, or even a need to innovate, test them, or a simple hunch.

Read More about Supplier Rationalization

Spend analysis is a catalyst that drives business decisions, as it has led to insightful findings and sustained savings for organizations. However, many times organizations have not realized the desired results with spend analysis, primarily because the organization – has failed to adhere to set standards, the input data is incorrect, and incorrectly classified, and this also results in not having control of the complete spend.

Read More about Spend Analytics

Frequently Asked Questions

What is Supply Chain Optimization?

It helps in Cost Reduction, Inventory Optimization, Plant Reliability.

How does Supply Chain Optimization act as a catalyst to achieve business goals?

We help in achieving all the three objectives -Cost Reduction, Inventory Optimization and Plant Reliability.

How does Supply Chain Optimization help in cost reduction?

It helps in controlling cost, decreasing potential risks related to vendors, ensuring best service deliverability and deriving value from vendors in the long-run.

Related Links: MRO Supply Chain Optimization, Inventory Optimization, Procurement Cost Reduction, Supplier Rationalization, Spend Analytics

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