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Supply Chain Management – Optimisation of Material and Capacity

Overview


EBS has a track record of closely hand holding companies for development of effective Supply chain management processes.

We help manufacturing businesses proactively respond to real-time supply chain problems, thus providing a sustainable competitive advantage to its customers. Our strategic consulting on SCM increases both top line revenue and bottom line profitability through greater sales margins and increased efficiency. The USP of our above solutions is that it assures ROI within first year of investment through
  • Increased inventory turns up to 50%  
  • Better resource utilization up to 20%
  • Improved customer service level up to 15%
  • Reduced work-in-progress up to 40%
Few of the challenges faced by EBS clients were.

Companies face lot of challenges in today’s market with increase in product mix and volume, rising customer expectation, stiff competition and reduced margin. On top of that, there are some complex production operations. The need of the hour is a robust strategic solution which will help manufacturing companies to:-
  • Have clear visibility to management on which demand will be fulfilled and which will not.
  • Make planning decisions to allocate constrained material and capacity to high priority customers
  • Effective planning taking into constraints of supplier delivery issues, machine breakdowns, shortage of human resources, change in demand from customer and other shop floor issues.
  • Planning on daily basis taking into consideration the available resources /constraints and proper synchronization among various departments (mainly marketing, production and purchase department).
  • Decision to be taken based upon future rather than taking decision based past data
  • Which all products we can use premium freight while getting from supplier and while delivering to customer – optimizing the profitability of plants. How the purchase/dispatch/marketing department can take decision based upon facts proactively to maximize profits.
  • Which product mix or parts to be run on daily basis to meet the high demand customer orders. Where additional resources to be put and where to look for additional outsourcing and which areas additional shift to be run -- every decision taken based on facts (data) on daily basis.
  • How production meeting can be more effective by synchronization of activities of all supporting departments - All departments working on same priorities.
  • Provide due date commits to customers on when products can be delivered
  • Optimize on sourcing decisions on when to order raw materials from suppliers, and in what quantity considering real-time capacity constraints
  • Real time data on production status and communicate this to marketing team
  • Better working capital management with increase in inventory turns, reduced overtime and reduced expedite costs
  • Consolidation of data from all the department and get reliable reports
 Methodology
  • Face to face interview with top management team & cross-section of the work force
  • Review of the SCM processes followed presently
  • Assessing adequacy of business metrics
  • Working on the To be processes and establishing same
  • Defining the customised algorithms for effective planning
  • Will define a process to  know when to generate production order & how much
  • The planning process will be established  taking into account all upstream & downstream constraints
  • Support  for implementing our software for effective planning
  • Ongoing review by EBS team to establish the SCM processes
Gains to the Organisation:
  • Optimized Inventory Turns
  • Improved service level to End Customers
  • High Customer satisfaction Index
  • Effective capacity utilization focusing on high priority demand from customer
  • Optimization of premium freight
  • Avoid too many meetings related to SCM
  • Visibility among the management and SCM team on what is  happening on daily basis in company
  • All meetings decision taken based on authenticated data from our Software.
  • Complete clarity on the Demand and constraints on daily basis and, there by fostering a  
  • Collaborative environment within all Departments
  • A Strong Process Approach as required byTQM, ISO/TS16949-2009, ISO9001-2008 and various business excellence models.
  • Open line of communication amongst all level of organisation. Dismantling of silos.
  • Better inventory control- Improved inventory Turns.
  • WIP is minimal as the operations are sequenced
  • Reduced resource downtime waiting for material
  • Reduced cycle time by using alternates
  • Problem in one department is immediately known  to other department & corrective action is taken
  • Give a realistic commit date to the customer
  • Unnecessary buffer at each stage is removed
  • The Top most –
          o  Customer centric organization
          o  Motivated Team
          o  No last minute Fire Fighting



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