Companies will never reach their full growth and profit potential, let alone the benefits of their supply chain management system to gain as long as business continues to talk about the value provider, has partnerships to continue to treat their suppliers as adversaries.
Material handling and inventory storage are two of the high cost of production, non-value adding activities. The removal of the warehouse, as it is known today, was a strategicThe aim of all manufacturers. Moving material for their point-of-use is not a new concept, the automotive industry have done so from the beginning and all industries with success, had point-of-use, inexpensive hardware.
Supply chain development is the key, and it is time to recognize that there is still much more to increasing supplier contribution to gross profits than by simply ordering the lowest price bidder. "Strategic outsourcing", which always focus onright materials in the right quantity at the right place at the right time and at the lowest "total cost" must "against-up" on suppliers for price reduction to replace alone.
A manufacturer of electronic components, test equipment, in response to the need to increase factory floor space, a new multi-function tester, construction decided to convert the problem of space for storing items in a production area. It was agreed that none of the new tester parts would enter the rest of the warehouse and that all common partswould be relocated their production to areas such as point-of-use "inventory. The key to this project was a success supports the development of an efficient suppliers, the timely and innovative "point-of-use" logistical support. High integrity, communication, scheduling flexibility / responsiveness, high quality, special materials, transportation and storage racks and a positive "continual improvement" mentality had developed some of the characteristics of the relationship.Three years after the start of the project was the manufacturer with a market leader, and the majority of funding goes, supports their supplier development team and powerful supplier, which it helped develop.
In today's competitive business world, many manufacturing companies are turning to value-added supplier partnerships to achieve the performance, availability of materials is a prerequisite for a successful point-of-use logistics. When a company forms a partnership thatleads to one of the links in the supply chain, both of which benefit from the other's success. The power of the supplier partnerships can not be denied. To a large extent they have the best of both worlds: the coordination and the level of large enterprises and the flexibility, creativity and low overhead usually associated in small businesses.
Suppliers have knowledge and insights, but not charged with the Guidelines from a remote location. You do not have long forms to fill outand make weekly reports and to act immediately, without consulting with a thick manual of standard operation procedures. In a growing number of industries, value-added providers prove to be a fiercely competitive - delivering high quality, competitively priced materials to precise buyer schedule requirements.
An excellent way of establishing the partnership relationship with each other, treat it as an extension of their own business. The value-added supplier should be seenpartner for services such as special procurement help on capital equipment and training needs and maybe some process engineering or quality engineering assistance. The buying partner, on the other hand, should look to the supplier partner for product development input, cost containment ideas and high quality parts/components/ assemblies delivered the right time, in the right quantity, and at the lowest possible "total cost."
Most business leaders underestimate the depth and breadth of Business skills that are necessary to initiate, and promote an effective supply chain program. Typically, these leaders hold suppliers at arm's length and keep the fight for economic gain for themselves. In fact, organizations often try to secure a supplier for the control of their own profits, weaken it. This is obviously ridiculous and is the first obstacle, though point-of-use is logistic, it can be successfully implemented to overcome - because without a strong supplier network mayPoint of no use logistics.
Business travel in the pursuit of point-of-use logistics proponents should respond: 1) business integrity, 2) from day to day supplier cooperation, 3) the free exchange of information, 4) decision-making and 5) provider profits. Supplier development and strategic outsourcing needs has been a "done from the top down" commitment and investment to produce an "it" team of experts, it can happen.
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