Techniques for Improving Your Company’s Supply Chain
By Dennis Organ, senior vice president of supply chain for Smithfield Foods, Inc., Smithfield, Va.
Supply chain improvements can be a substantial undertaking for companies of any size, and often require years to complete. However, it is a task that can deliver substantial benefits in terms of improving efficiencies, enhancing customer service and minimizing a company’s environmental footprint. Here’s how companies can improve their product’s path to market:
Reducing complexity. The most efficient way to improve the supply chain is to reduce the complexity of the transactions required to move an item from end to end. We are all better basketball players if the rim is 3 feet off the ground. Some common complexity reducing projects are inventory bearing location (IBL) consolidation, software integration, transportation routing optimization, production location rationalization and SKU rationalization.