What is "supply chain"



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Is your supply chain faster than your competitors'?


Competing in today's marketplace

Supply chain excellence is a competitive advantage.  Many companies don't realize that in today's marketplace, they are not competing product v. product so much as they are competing supply chain v. supply chain, and the company with the most efficient and effective supply chain will be the company that gains market share and profitability.


For instance, let's look at the market for personal computers.  When the average consumer goes to the store and shops for a PC, does he really care if he buys a Compaq, HP or Dell?  Not really.  They may have a few minor feature differences, but they're basically the same.  So, which company will get the sale?  The company that provides the right PC at the right place at the right time for the best price.  And providing the right product at the right place in the right quantity and at the lowest price is what supply chain management is all about. 


"Why should I be concerned with Logistics or Supply Chain Management?"

"What kind of payback or benefits can I expect from improving my supply chain?"


Typical objectives of effective supply chain management include:
- Lower total delivered costs and lead times
- Improve trading partner relationships
- Improve inventory performance cost, speed
- Reduce cycle time
- Free-up working capital
- Increase flexibility/visibility
- Improve customer service
- Gain overall competitive advantage

Typical quantifiable metrics to measure supply chain improvement include: 

- Delivery performance
- Inventory reduction
- Fulfillment cycle time
- Forecast accuracy
- Overall productivity
- Lower supply chain costs
- Fill rates
- Improved capacity realization

Contact Alloquor today to discuss how we can help your company reduce costs and improve supply chain effectiveness. 



Dilbert's words of wisdom on inventory management:



10 Tips for Managing Expedited Freight Costs:
(Inbound Logistics magazine article written by Thomas Phelps of Alloquor Consulting)



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