Tuesday, 6 December 2016

Why work on supply chain?

Businesses have to overcome the challenge of integrating supply chains that benefit their customers while making a profit.  The main issue for these businesses is inefficiency. All businesses have a lot of waste in the business but other causes and contributing factors of inefficiency include:
  • Missing or a lack of information
  • Poor management
  • No leadership
  • Power plays
  • A large amount of stock resulting in large inventories
  • Misdirected efforts
  • Delays
  • Trust issues
This is why it’s important to focus on reducing waste in the supply chain to remove the inefficiencies and increase profits while servicing the customer.

This will provide the customer with greater value and benefit the company as a result. Waste in the supply chain and in business is a human activity that uses up resources without creating value. The first people recognise this waste were Japanese manufacturers.

There are many gains to be achieved by eliminating waste that include cutting production times, reducing inventories, customer satisfaction and increased profit. When integrating supply chains it’s essential to ensure waste has been removed from each part of the chain in order to run more efficiently. 

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