Supply Chain Management transformation is a strategic imperative for any manufacturer. This process is very importance because it sees all suppliers and customers as part of one complex supply chain network and understands that transforming that supply chain into a synchronized chain is the primary goal. Supply chain management transformation provides fast access to relevant and accurate information. This timely supply chain information can pay off handsomely in lower costs, less inventory, improved throughput, shorter cycle times, and the highest levels f customer service.
The very essence of supply chain management is effective information and material flow throughout a network of customers and suppliers (Donover, 2010). In order for Riordan Manufacturing to gain/or maintain its place as a cutting edge manufacturing company. Riordan must extend their management of physical logistics to address the entire supply chain process, from supplier to buyer, in order to shorten product life cycles, increase competition, and meet the heightened expectations of customers.
There are clear opportunities for making supply chains more cost effective, more transparent and more responsive to improve customer service. Four key areas are critical for effective supply chain improvement: process, measurement, information management and technology. Best practice in these areas includes (Provey, 2009): A. Integrating internal functional processes and systems across the enterprise.
This includes the physical supply chain execution and management processes: * Customer service management Demand management * Materials and Production planning * Logistics and inventory management * Order Fulfillment * Sourcing and Procurement * Supplier management * Product development and commercialization B. Collaborating with suppliers and customers, involves sharing information and integrating intercompany processes to improve resource utilization and to enhance end-consumer satisfaction across the supply chain as a whole C.
Automating management and execution processes, such as order tracking, online purchasing and aterials and production planning. This allows cost, time and waste to be taken out of the supply chain To engage in business improvement initiatives the benefits from such initiatives include improving customer service, greater efficiency, lower inventory costs shorter cycle and lead times, and reduced supply chain complexity (Povey, 2009). Objective 1 Improvement Assessment and Analysis Define opportunities based on operations strategy and performance shortfalls