Lead time reduction is something all manufacturers wish to achieve. By identifying work-in-process (WIP), value stream mapping helps to pinpoint which processes in a production sequence drive overall lead time. Finding ways to reduce work-in-process (WIP) helps to reduce lead time.
Outsourcing the procurement of some materials (direct or indirect) is appealing since most manufacturers lack the capabilities or capacity to successfully capture the full value of total spend optimization. Procurement outsourcing providers employ many resources that client companies often lack in sufficient quantities such as procurement expertise, category knowledge, technology, and processes. Yet, while outsourcing procurement has its advantages it also poses some risks…
Key Performance Indicators (KPIs) are an efficient way to measure the overall health of an organization, project, team, or individual, When it comes to supply chain and logistics operations however, there’s often confusion over which metrics to use or even how many KPIs there should be. The truth is, there isn’t a standard number of KPIs that must be used. The specific measurements and number of metrics to utilize completely depend on your specific needs.
Lead time has a significant impact on inventory level. Thus, reducing lead time should be top of mind for manufacturers looking to better control their parts inventory. Long lead times tie up cash in huge inventories. This is cash that could be better used elsewhere in the business such as generating more sales or improving competitiveness.