How to Reduce Lead Times and Improve Supply Chain Visibility Using the Cloud
The New Normal
One of the unintended consequences of the export of US manufacturing jobs is the rise of global supply chains. In the past, many of the suppliers used to be clustered around their customers' manufacturing centers. Those days were gone forever when manufacturers in pursuit of cheap labor first went to Mexico and then to China. Global supply chains have led to longer lead times which has translated into reduced flexibility in meeting changing customer needs. In the past, you could easily pick up the phone and call the supplier from across the street or town. Today, you have to send an email to a supplier who speaks a different language and is located half way around the globe from you and operates in a different time zone to learn more about your order. The barriers are distance, time zone, and language, and incompatible technology. Your cost savings from cheap labor is negated by the higher supply chain transaction costs. So, what type of supply chain visibility do you have compared to days past? What can you do in this New Normal to keep your commitments to your customers?
Supply Chain Economics
Q: What are your true supply chain costs? An enterprise's total supply chain costs include three elements: Direct, Transaction and Opportunity costs.
Direct Costs: Product, Shipping, Insurance, Customs, and Warranty costs.
Supply Chain Transaction Costs: 3rd party transaction fees, IT support staff, Hardware, Software Licensing, and Annual Maintenance fees.
Opportunity Costs: Inventory Turns, Supply Chain Visibility, Operational Efficiency, Business Agility, Customer Shipment Delays, and Brand Image.
Supply Chain Manager: ERP for the Global Supply Chains
Supply Chain Manager is an innovative and revolutionary Cloud solution for the modern and complex Supply Chains. Not only does it have the capabilities of a traditional ERP but it also has the Supply Chain Integration capabilities needed to allow supply chain partners to seamlessly operate. For companies, that have their own ERP systems, Supply Chain Manager offers a complimentary way to integrate with both your smaller and larger supply chain partners. Smaller partners without an ERP solution can choose Supply Chain Manager to run their operations. You have choices that can deliver tremendous flexibility, integration, and visibility.
Reduce Your Supply Chain Costs with Supply Chain Manager
Supply Chain Manager will lower your Transaction and Opportunity costs by eliminating 3rd party transaction fees, and the need for special software while helping to improve inventory turns, supply chain visibility, and minimizing customer shipment delays which enhances your brand image.
Call us today at (919) 314-2896 for a free assessment of your true and complete supply chain costs.
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