TFI quarterly forum discuss the importance and key factors of SCM
SAP hosted The Technology Forecasters Inc. (TFI) quarterly forum in their headquarters close to Heidelberg and the major focus of this forum was the rising importance of Supply Chain Management (SCM), its optimization and visibility. . A major focus of this forum was the importance and key success criteria of Supply Chain Management (SCM). The forum witness participation from all over the world, representing OEMs, EMS and logistic companies, where the participants shared best practices and discussed key issues of today’s SCM activities.
The forum had intense discussions with ample examples to deliver Supply Chain Optimization strategies and the key areas to be taken into consideration while designing these strategies.
Douglas Kent, President of eKNOWtion, showed in his presentation, that as inventory management is facing demand volatility or supply chain disruptions, a negative impact on cash flow is a real risk to business. In order to ensure inventory optimization there should be the right sync between target inventory days and product life cycle. Demand, lead times, number of products, objectives (like service levels or minimizing costs) and the general cost structure are other aspects of inventory policy. The inventory strategy could be composed of competitive requirements, like reliability, responsiveness and flexibility, and also cost requirements and asset management efficiency goals. To sum up, the forum established that each product needs its own inventory and supply chain strategy.
Hitesh Attri, Supply Chain Consultant at eKNOWtion, said that the availability and visibility of the right information to enable the right product, at the right time, at the right place to ensure cost-effective decision-making for efficient product or service delivery.
says To achieve improved customer performance and reduce internal costs, Supply Chain Visibility is needed. A clear SC Visibility roadmap is critical for implementation. Some aspects to consider for a clear SC Visiblity map are identifying the right metrics and defining targets, identifying root causes for missing information, setting up a cross-functional team and involving all stakeholders in the process.
The forum which had top 25 companies emphasized on the fact the optimized and visible SCM can help companies stay afloat, flexible, innovative and successful in the market which is witnessing an economic recession.
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