Compiled ByDave Schafer The most profitable supply chains revolve around mutually beneficial partnerships and process-based relationships that integrate suppliers throughout the product's life cycle, a new report reveals. The 154-page report by consulting company Best Practices LLC says companies scrambling to cut expenditures and boost profit margins are looking to their supply chain to reduce processing errors and excess supply costs. Benchmark partners cut lead times and inventory by more than 50% and eliminated 100% of processing errors and paperwork due to improved supplier partnerships, the report found. The report, an analysis of how benchmarked companies partner with suppliers to meet supply-chain improvement goals based on insights from 150 companies, also found some tactics companies could take to make supply chains more effective:
- Align supply-chain management systems with strategic initiatives and goals
- Forge partnerships with suppliers
- Certify supplier partners
- Employ technology to improve supplier partnerships
- Refine and enhance manufacturing processes
- Foster communications between partner organizations
- Emphasize the mutual benefits of partnership
