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Given the many global supply chain challenges the manufacturing industry faces today, conventional advice to tackle such challenges often includes adding inventory, increasing lead times to customers, reducing the number of product offerings, and raising prices. Unfortunately, this “conventional advice” will likely result in customer dissatisfaction, pressure on your cash flow, and ultimately, reduced profitability.
As such, before taking “conventional advice” manufacturers should first consider:
Manufacturing companies measure a lot of things – sometimes too many things. So, what is important to measure when evaluating the robustness of value streams?
Create an integrated value stream to offset global supply chain challenges
For those manufacturing companies facing growing consumer backorders, an inability to predict product availability accurately, unexpected or increasing inventory levels, or a bimodal distribution of inventory, these challenges may signal supply chain issues. To successfully tackle such issues, companies must create an integrated value stream that understands customers and builds an operating plan to meet their expectations. Doing so will allow for the elimination of conventional challenges, and generate customer excitement, and ultimately, create operational excellence.
Charlie Clevenger is a principal in UHY Consulting with more than 35 years of industrial experience, including 20+ years of executive level global experience in the areas of supply chain management, procurement, operations management, program management, and business leadership. He also has significant experience collaboratively integrating these areas into the overall business to optimize performance and financial results. Charlie has direct global business leadership experience, including Chief Procurement Officer, with organizational responsibility up to $9 billion and 500+ professionals.
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