25 Aug 2021

Procurement Outsourcing Vs. Insourcing

2021-08-27T09:42:27-04:00August 25th, 2021|Categories: Inventory Management, Risk Mitigation, Supply Chain Management|Tags: , , , , , |

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…

2 Mar 2021

Cost Multiplier Effect of Lead Time

2021-03-09T21:15:40-04:00March 2nd, 2021|Categories: Risk Mitigation, Supply Chain|Tags: , , , |

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.

22 Feb 2021

Tips for Effective Supply Chain Management Contracts

2021-03-01T09:37:05-04:00February 22nd, 2021|Categories: Risk Mitigation, Supply Chain|Tags: , , , |

Cooperation is necessary for any supplier agreement to be successful. However, successful cooperation in supply chain management relies significantly on effective contracts. Supply chain management contracts require clear, guidelines understood and agreed upon by all relevant parties. To create better contracts and manage them well, it’s necessary to carefully consider a few key elements.

24 Aug 2020

Lean Accounting Introduction

2021-09-16T10:48:48-04:00August 24th, 2020|Categories: Lean Learning, Lean Manufacturing|Tags: , , , , , , |

Many organizations find early in their lean journey that their accounting approach does not mesh well with lean thinking. While lean can help a company become far more effective and efficient by reducing waste, we should be able to account for those improvements. However, common accounting practices often fail to adequately measure lean improvements. An alternative, lean accounting approach is…

22 Jun 2020

7 Lean Wastes – Transportation

2020-06-18T20:53:32-04:00June 22nd, 2020|Categories: Lean Manufacturing|Tags: , , , , , , , |

By definition this is the movement of materials that adds no value to the product. In most cases, transportation waste is thought of as normal in a manufacturing environment. However, it is also evident in an office environment. For example, walking around to get signatures on documents. The excessive filing also leads to the waste of transportation since those files need to be moved from time to time.