Supply improvement program management

Change No oontinuous process improvement program in place Work Environment Silos Supply Chain Management React to requisitions... 

Experience shows that adopting the principles of lean manufacturing from assembly industries can be a powerful operational improvement lever. Lean management, first introduced by Toyota, appeals because it holds out a promise no other approach can make not only does it cut costs and improve quality, but it also stabilizes operations and matches supply with demand. A companywide lean transformation program structured around the improvement of Overall Equipment Effectiveness (OEE) may unearth a hidden capacity that is equivalent to adding another plant to the manufacturing network. Lean, however, should not only be applied in production, but across the entire value chain. 

The rigorous management of the number of SKUs reinforces this approach structured programs often result in a 20 to 30percent SKU reduction potential and improved focus, and reduce the complexity of the entire supply chain. A further key to success is to hold sales and marketing accountable and incentivized for forecast accuracy, and to keep regular track of it. 

Sabine Deppe is a consultant in McKinsey s Cologne office. She is a member of the chemicals and purchasing and supply management practices. Her work focuses on operational and organizational improvements in chemicals, especially in the context of broader performance transformation programs. She holds a PhD in chemistry from the University of Gottingen. 

A good transportation risk management system includes periodic audits of the management system, its technical elements, and compliance across the supply chain. The purpose of an audit program is to provide feedback on transportation risk management efforts to improve or enhance current operations such as determining ... 

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