Outsourcing supply chain functions, 100% on-time delivery, and collaborative programs with partners are formulas for success in supply chain management. In a study by Best Practices, LLC a Chapel Hill, N.C -based consulting company, titled "Supply Chain Management Practices," 100 companies spilled their secrets.
Here are some of the findings:
- Benchmarked companies outsource supply chain functions to save an estimated 10-20% of costs. A leading automobile manufacturer stated that outsourcing helped to reduce its inventories by $1 billion, trim inventory carrying costs by $124 million and decrease delivery times to dealers by 26%.
- Companies that reported 100% delivery performance to commit dates have an extraordinarily tight supply chain -- one that is transparent to sales and manufacturing representatives.
- A collaboration program helped one company drive a reduction of 40% in Work in Progress and a near-optimum level of finished goods inventory for several product lines. This program, a system from Optiant, also helped drive 90% reduction in production times and 85-90% improvement in delivery performance with no increase in components.
To download a report summary visit: http://www3.best-in-class.com/bestp/domrep.nsf/Content/8A46B02226F2A9EE85256DDA0056B505!OpenDocument
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