IITA 5-Year Supply Chain(Importance of defining a direction)
IITA 5-Year Supply ChainImportance of defining a direction
Question – What benefits are required?…Set out the IITA supply chain mission • The supply chain should deliver excellent customer service to all program activities, it should be responsive to needs, flexible, and this should be seen in a high level of satisfaction from the end customer • The supply chain should deliver best value at all times, it should aim to reduce costs and eliminate waste of all types, including time • The IITA supply chain should aim to follow best practise in international supply chain management by bench marking the most effective of commercial organisations • Or more basic. We want simple, robust procedures which allow attainable levels of visibility and control
Supply Chain in Context • Logistics departments work to support the entire organisation – the end needs of the customers must be considered in the strategy.
Main Areas• Procurement• Inventory Control and Warehousing• Transportation & Supply Networks• Longer Term Supply Chain Objectives
Procurement• Likely to be the biggest variable cost in the organisation• Need to analyse the spend across the different product categories
Procurement Process• Training to control spend• Training in product categories to understand specifications• Standardisation across the organisation – centralised procurement?
Inventory Control and Warehousing• Inventory control forms the basis of many other aspects of supply chain• For example demand forecasting and procurement planning• Must enforce and inventory control policy
Transportation and Supply NetworksAppropriate size and configuration offleet to suit the organisationFleet cost control (fuel and parts)Right balance of Sea, Air and Landtransportation (cost vs. speed)
Longer Term Exercises• Physical Supply Network• Value Stream Mapping• Review of agents• IT strategy