The days of producing a product in one place are pretty much gone.
If your product is even slightly complex, youre probably sourcing supplies from a few different suppliers.
And they may be sourcing from other suppliers still.
Manufacturing in the modern era isnt local its global.
Thats wheresupply chain managementcomes in.
When youre trying to build a good supply chain, you cant just set it and forget it.
It’s free, every week, in your inbox.
you better vet the companies that supply your tier one supplier.
Most companies dont even know who they are …
If youre notvetting the next tier down, youre setting yourself up for problems down the line.
That said, its absolutely worth your time to verify you vet them closely.
Thankfully, supply chain software can help with that.
Good software will not only enhance your capabilities it will extend them.
ensure the lines of communication are clear and open.
You also need to ensure they have the capacity to fill the kinds of orders youll be putting in.
If you dont vet your suppliers, youre setting yourself up for trouble down the line.
As Oracle points out, supply chains are less chains now than acollection of webs.
Using software to help is almost essential, as some of thelargest companies in the world can attest.
If your supply chain breaks down, you start losing money almost immediately.
Why take the chance?
That means quality issues are easier to deal with.
Your supply chains can be shorter, your material handling routes simpler.
If you havent studied theJust in Time methodsthat Toyota employed, its worth going back and taking a look.
you could simplify a lot of your supply chain problems.
The price that you pay for a product is only part of the picture.
You have to shift your mindset to total cost of ownership.
According to Supply Chain Quarterly, only25 to 40 percentof costs for goods and services are in acquisition.
The up-front cost isnt actually the bulk of the price.
Youre actually paying more on the back end than you are for the good or service.
In short, its a holistic mindset as opposed to a granular one.
If your supply chain has gotten out of control, it doesnt have to be.
Are you willing to put in the work?
Supply chain is critical for every part of your business.
Maximize uptime, minimize downtime and build in slack so you might serve your customers better.
Take back control of your supply chain and see what it does for your business.
