A supply chain is a network of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage.
Transform inputs in the form of materials and information into outputs in the form of goods and service.
Supply Chain processes are the operational heart of a company and are critical to achieve the level of cost, working capital investment and service needed to guarantee the profitability.
Supply Chain managers normally work in the continuous effort to achieve this goal by managing many different trade-offs: "if I need to increase the service my inventory costs will certainly raise", "how to prevent costs and inventory to grow with the continuous product variety increase ?", "how is it possible to increase the service if the forecast is always wrong ?", "how can I improve if I'm always busy in fire fighting",...
The way to improve performance breaking the conflicts hidden in these trade offs exists: Solving Efeso experimented and refined it during 20 years experience in the Supply Chain of many different industrial sectors.
Four pillars belong to World Class Supply Chain Management:
* World Class Supply Chain * Lean Flow * Distribution Network & Transport * Suppliers Integration.
This methodology is based on three key factors:
* KPI focus and selection of specific improvement methods according to performance gaps vs. company vision (Service, Cash, Cost) * Optimisation of the Supply Chain flows and processes to achieve the maximum of its potential * Continuous constraints attack (es. set-up, lead time, product design,...) to increase this potential performance
Through this approach it's possible to:
* Eliminate non value added activities and minimize waiting time in the process * Reduce inventories and WIP through increased synchronisation between process steps,