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Supply Chain Management & Logistics

If you are manufacturing any product and to complete the product you buy parts from suppliers (OEM's), and later these products are sold to customers, then you need an effective & efficient supply chain. Some supply chains are simple, while others are rather complex. The complexity of the supply chain varies with the size of the business and the intricacy and product line that are manufactured.

To ensure that the supply chain is operating efficiently and generating the highest level of customer satisfaction at the lowest possible cost, you need to adopt Supply Chain Management processes and associated technologies. URconnect India can help you in adressing all the three levels of Supply Chain Management activities: strategic, tactical, and operational.

  • Strategic: At this level, URconnect India helps your top management who are looking for high level strategic decisions concerning the whole organization, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and target sales markets.
  • Tactical: URconnect India supports your company on adopting measures that will produce cost benefits such as developing a purchasing strategy with favored suppliers and identifying such suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory (ZERO inventory).
  • Operational: These are routine decisions that affects how the products should move along the supply chain. URconnect India helps companies in making schedule changes to production, purchasing agreements with suppliers, taking orders from customers and moving products in the warehouse.

URconnect India always emphasizes that to achieve maximum benefits from your supply chain management process, you need to put some level of investment in technology especially looking at the fast pace market development and cut-throat competition . The backbone for many large companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle. Since the wide adoption of Internet technologies, all companies irrespective of their size can take advantage of Web-based software and Internet communications. Instant communication between vendors and customers allows for timely updates of information, which is key in management of the supply chain.

Supply Chain Management & Logistics

Till now most of the Indian companies have enjoyed the centralized Supply Chain but in today’s decentralized supply chain models and tighter trading partner collaboration demands:

  • an expanded logistics capabilities,
  • more warehousing locations,
  • more frequent ordering,
  • smaller order sizes,
  • more affordable modes of transportation,
  • multichannel distribution capabilities,
  • the ability to configure to order, personalization and distributed responsibility.

With the availability of improved visibility and fulfillment tools, the logistics function has become a key component of supply chain operations, helping to combat inefficiencies in warehouse labor, transportation and space utilization; and inaccuracies in inventories and customer shipments. It has been observed by URconnect India that most of these succesfull organizations are now spending an average of 8–12 percent of sales on logistics, and this trend is increasing.

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What we offer in Supply Chain Management & Logistics?

URconnect India helps you build a healthy, collaborative and profitable supply chain culture at your business, as a provider of third-party SCM & logistics services.

URconnect India | Supply Chain Management & Logistics Components

Our approach involves breaking down of the silos that historically isolate the various areas of a company into unconnected functions with no apparent link to any of the other functions. To establish a silo-free supply chain, URconnect India helps manufacturers in the following SCM & Logistics functions:

  • Developing a Logistic Strategy
  • Lean Supply Chain Management
  • Operational Supply Chain Management
  • Strategic Supply Chain Management
  • Tactical Supply Chain Management
  • Benchmarking the Supply Chain

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Levels & Components involved in Developing a Logistic Strategy

In most cases the supply chain constantly changes and this results in logistics functions of your organization. Hece it is offen rcomended by URconnect India that you should develop and implement a formal logistics strategy to adapt to the flexibility of the supply chain. This will allow your company to identify the impact of imminent changes and make organizational or functional changes to ensure service levels are not reduced.

But, before you develop an effective Logistic strategy you must review it at four distinct levels:

  • Strategic: Examine your company’s objectives and strategic supply chain decisions, the logistics strategy must review on how the logistic functions can contribute to those high-level companies objectives.
  • Structural: Examine the structural issues of the logistical functions, such as the optimum number of warehouses and distribution centers or what products should be produced at a specific manufacturing plant.
  • Functional: Review how each separate function in the logistics department is set to achieve functional excellence.
  • Implementation: The key to developing a successful logistics strategy is how it is to be implemented across the organization. The implementation of the logistics strategy will include development and/or configuration of an information system, introduction of new policies and procedures and the development of a change management plan.

All the strategies (Channel, Marketing, Logistics etc) are developed keeping an objective to ascertain whether any potential cost benefits can be achieved or not. Hence URconnect India focuses on all components of the operation and includes the following while developing Logistics Strategy:

  • Transportation: Does the existing transportation strategies enhances the service levels?
  • Outsourcing: What outsourcing is used in the logistics function? Would a partnership with a third party logistics company improve service levels?
  • Logistics Systems: Do the existing logistics systems provide the level of data that is required to successfully implement a logistics strategy or a new systems needs to be developed?
  • Competitors: DEtailed review of what the competitors are offering. Can changes to the company’s customer service will improve service levels?
  • Information: Is the information that drives the logistics functions of the organization real-time and accurate? If the data is inaccurate then the all decisions will go heywhy and will result in errors.
  • Strategy Review: Are the objectives of the logistics functions in line with company objectives and strategies.

A successfully implemented logistics strategy is very important for your company which is dedicated to keep the service levels at the highest levels possible despite supply chain changes.

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Lean supply chain management - an understanding

Lean supply chain management is not only beneficial to those companies who manufacture products, but also to those businesses who want to streamline their processes by eliminating waste and non-value added activities. Most companies have number of areas in their supply chain management where waste can be identified as time, costs or inventory. To create a leaner supply chain you must examine each area of the supply chain.

Businesses either have centralized, de-centralized or a complex purchasing operations. Large corporate/business houses often have a common corporate purchasing groups as well as local purchasing for routine smooth operations. This leads to vendors with multiple supply contracts with variations in prices depending on manufacturing/service location. To avoid any confusions and discrepancies companies now a days are practicing lean supply chain management to reduce their procurement function so that they have only one contract and one price for all locations. Businesses are looking to new technologies to assist them in improving procurement processes. Changes in payment options i.e., payment on receipt rather than payment on invoice further reduces resources for their purchasing department thus resulting in improved supplier relationships and a streamlined processes.

Lean supply chain management practice has gained popularity especially in the manufacturing sector as significant improvements have been observed and most of the manufacturing has achieved reduced waste and resources while still maintaining the operational performance. Lean supply chain management also help companies to examine each of their routings, bill of materials and equipment to identify where significant improvements can be achieved.

Warehouse processes are examined to find areas for eliminating waste of resources and non-value added steps. One area where your company should always be working on is the reduction of unnecessary inventory. This will result in negligible or zero accumulation of inventory, minimized warehousing space and handling, in turn reducing overall costs.

Businesses who want to implement lean processes must look to their existing transportation procedures to check where it can be streamlined. In many instances it has been observed that companies in their efforts to improve customer satisfaction leads to poor shipping decisions.

Lean supply chain management requires businesses to examine every process in their supply chain and identify those areas that are using unnecessary resources, which can be measured in figures, time or raw materials. This will improve the company’s competitiveness as well as improve the company’s overall profitability.

Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the movement of raw, semi-finished & finished products along it. Though all supply chain starts and ends with the customer.

URconnect India | Elements of Supply Chain

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Green Supply Chain - The Best Practices

With increasing awareness on global warming most of the corporates are interested in building a green supply chain. But most of the companies are still coming to terms with how this can be achieved and where do they start.

For years businesses have been concentrating on improving supply chain visibility, refining efficiency and minimizing cost. Despite the focus being moving towards a green supply chain the goals of visibility, efficiency and cost reduction do not have to be discarded.

Use Green Supply Chain to Improve Processes

Companies do not often change their businesses processes and it is this attitude allows inefficient processes to continue unabated causing unnecessary waste and pollution. Businesses that want to transition to a green supply chain should take the opportunity to review all their business processes to identify areas where adopting a greener outlook can actually improve their business.

Companies should review each process along the supply chain to identify if a more environmentally sound approach will help cure the inefficiencies that occur. You need to exercise and identify all those processes where raw materials were wasted; resources underutilized and unnecessary energy used due to inefficient equipment

Green Suppliers and Material Refurbishment

While reviewing the business processes you should look beyond the factory walls. When reviewing purchasing processes the aim of company, looking to transition to a green supply chain, should be to find suppliers who have minimized their environmental impact without reducing the quality of their product or significantly raising costs. By purchasing products from green suppliers businesses can then begin their green supply chain before any material reaches their site.

On the opposite end of the supply chain you should look at the return process. Most of the businesses like yours have not developed a successful refurbishment program for their products that have been returned or exchanged. By offering refurbished items businesses can increase purchasing options to their customers and widen their customer base, whilst improving the environmental impact of their products.

There are many ways in which you can transit to a green supply chain; however it is important to realize that it is difficult to achieve results without strong focused leadership. Senior management has to lead the effort to move to a green supply chain and provide the resources for the transition. Many businesses have documented a intent or plan to implement a green supply chain, but without the necessary resources, both financial and manpower, all the hardwork will be minimal.

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