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Supply Chain And Materials

I can help you cut procurement costs.

When materials costs are about 50% of revenue

Even a few % points decrease in costs makes a difference

A well-run procurement department is the backbone of any successful manufacturing company. It requires a deep understanding of the market, the company’s business needs, and the global supply base. It also requires a commitment to developing long-term relationships with trusted domestic and overseas suppliers.

It requires thinking differently.

As large OEMs started sourcing from China, especially after the WTO agreement in 2000, the small manufacturing companies in the US faced a reckoning that forced them to rethink their strategies. They were now competing with manufacturing costs halfway around the world.

Before I started Clarity Manufacturing Consulting, I had been and continue to be involved with low-cost country sourcing initiatives to allow the small manufacturers in the US to remain competitive. I helped my clients engage in discretionary sourcing of products that made more sense to have made overseas rather than tie up expensive labor and equipment to make them in the US.

Therefore, these small manufacturers were able to offer competitive quotations to OEMs. The risk of long-lead times and trans-oceanic shipments was more significant than the price difference from the Asia price.

Don’t Leave Your Customers
Without Product

Supply chains are longer than ever before and are under pressure as the “house-of-cards” infrastructure crumbled all over the world during the pandemic. Consumer expectations are rising while competition is increasing, and margins get squeezed. At the same time, the market is becoming more complex. It is essential to have a clear understanding of your processes and business goals, and objectives.

I suggest an approach that I call Strategic Clarity. That means looking at the structures and processes to accomplish the business goals and objectives. Once this foundation is in place, it becomes easier to decide which activities to keep, outsource or automate. By taking the time to gain a deep understanding of your business, you can develop a clear plan for addressing supply chain challenges. That will help ensure your business keeps your customers supplied with the products they need when they need them.

Managing An
Effective Supply Chain

  • The first step is to have a clear understanding of your company’s goals and objectives.
  • The second step is to select the right suppliers. This requires careful analysis of supplier capabilities, costs, delivery times, quality levels, and other factors.
  • The third step is to continuously monitor and improve your supply chain. This includes setting up systems to track costs, quality levels, delivery times, and other performance indicators. It also involves constantly seeking ways to improve your supply chain’s efficiency and effectiveness.

I Help Small Manufacturing Companies:

You can check out the recent highlights from the 30+ years I have been involved in Supply Chain cost reduction initiatives on this page.

  • Minimize procurement risks
  • Reduce supply chain costs
  • Increase profitability
  • Transform procurement
  • Manage supply chain
  • Overcome operational challenges

MY CLEAR AND EFFECTIVE PROCESS

My process is simple and has yielded amazing results time and again. I am confident it can do the same for you.

1.

Assess Current State

I start by assessing your company’s current state and understanding your unique needs and challenges.

2.

Ideate Solutions
I look at the problems from all angles and help you identify areas of opportunities for increasing revenues and profits.

3.

Propose Plan
Once I have settled on the best solutions, I propose a plan for implementation in a way best suited to your company.

4.

Test/Implement Solution
I test and implement the solutions, making adjustments along the way to ensure the best possible outcome.

5.

Systemize/Report Results

I systemize what has been implemented, and provide detailed reports to keep track of the progress and measure the impact of my strategies for your company.

Don’t Face Tomorrow’s Challenges With Yesterday’s Thinking!

Because TODAY’S PROBLEMS COME FROM YESTERDAY’S “SOLUTIONS” (Peter Senge)

Think Differently

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