Supply chain management involves integrating and partnering with suppliers to meet customer needs through timely delivery of quality products at a low cost. It focuses on availability, cost competitiveness, and meeting growing customer demands. Supply chain managers control most inventory and costs, and can free up cash flow. Benefits include increased profits and cash flow through higher revenue, reduced costs, and improved working capital. Supply chain tools help optimize suppliers, reduce inventory, and increase financing. Risk management actions ensure supply chain resilience.

1. WHAT THE HECK
is Supply Chain Management
&
Why should I care
(814) 341-0168 [cellular] micyn2@gmail.com
MiCyn
Management Consultancy

2. Marketing
Demand Planning
A/P
A/R
Supply Chain Management
Strategic Sourcing
Purchasing
Outsourcing
SUPPLY CHAIN
CUSTOMER
Sales Engineering
Master
Scheduling
Outbound
Logistics
Manufacturing/
Operations
Inventory
Control
Production
Control
Inbound
Logistics
Receiving
Customer
Support
MiCyn THE VALUE CHAIN IS COMPLEX
Management Consultancy

3. Balance Forecasting
and
Responsiveness
(Agility)
Complexity
Cost Control
Service
Risk Management
Supply
Complexity
Demand
Volatility
MiCyn THE SUPPLY CHAIN CHALLENGE
Management Consultancy

4. focuses on integration and partnerships in order to meet
customers’ needs on a timely basis, with relevant and high quality
products, produced and delivered in a cost-effective manner
provide AVAILABILITY and COST COMPETITIVENESS
often a “gating” factor for increased growth is the ability of the
supply chain to meet increasingly complex and growing customer
demands
controls most of the inventory
manages 60%-70% of the cost
helps generate revenue by providing outstanding product
availability
supply chain levers can be used to free cash reserves from
balance sheets rather than depend on restricted credit markets
MiCyn SUPPLY CHAIN MANAGEMENT …
Management Consultancy

5. Accountable for:
1. the right part
2. made with the right process
3. made with the right safety
4. delivered to the right place
5. at the right time (on time delivery)
6. with the right quantity
7. at the right quality
8. at the right price
R8
MiCyn THE RIGHT DOCTRINE (also called R8)
Management Consultancy

6. MiCyn SUPPLY CHAIN MANAGEMENT BENEFITS
Management Consultancy
INCOME STATEMENT
HIGHER
PROFITS
IMPROVED
CASH FLOW
REVENUE
INCREASED throughput
OPTIMIZED, reliable suppliers
DECREASED line shut-downs &
missed revenue opportunities
COST
REDUCED purchased costs
IMPROVED on-time delivery
IMPROVED quality
WORKING CAPITAL
(cash + inventories + A/R) – Current
Liabilities
INCREASED inventory turns
REDUCED inventory
IMPROVED payment terms with
suppliers
TECHNOLOGY
INCREASED use of Purchasing
Programs
BALANCE SHEET
IMPROVED
CAPITAL INTENSITY
(Invested Capital)

7. MiCyn SCM TOOL: MATERIALS-PURCHASING MATRIX
Management Consultancy
Reduced inventory 45% for a key customer by linking Purchasing,
Inventory and Finance with customer forecasts

8. MiCyn SCM TOOL: SUPPLY CHAIN FINANCE … a 3rd type of financing
Management Consultancy
An example of a $50 Million manufacturer, $1 Million is added to the bottom line!

9. A cash flow problem …
Prices INCREASE
Prices DECREASE
you raise your prices; your customers threaten
to buy from competitors
OR you absorb the increases and live with lower
margins
your customers demand price reductions and
threaten to buy from competitors
AND you reduce your prices by their demanded
amount and live with lower margins
The solution …
Material Price Model
A consistent and defendable
methodology , that allows you to
recover your price increases with the agreement
of your customers
increase your prices AND protect your margins
verify you reduced your prices the correct
amount, not too much
fully understand your cost drivers, ready for the
next contract
MiCyn SCM TOOL: MATERIAL PRICE MODEL
Management Consultancy

10. A manufacturer recovered $25 Million+ over a 1 ½
year period, preventing a loss
Another submitted $1.7 Million in defendable price
increases for the next quarter
The process triggered margin analysis for all
customers, leading to revised pricing decisions
Another company purchased better than the market:
15% below the market, providing a competitive
advantage in winning new orders
MiCyn MATERIAL PRICE MODEL RESULTS
Management Consultancy

11. MiCyn RISK MANAGEMENT : ACTIONS
Management Consultancy

12. MiCyn CHECKLIST
Management Consultancy
Are you …
Yes No
viewing your supply chain as a strategic asset?
continually evaluating which value chain activities are core competencies
and outsourcing the rest?
BUYING FOR LESS (Supplier Relationship Mgmt., Global Sourcing)?
BUYING BETTER (Focusing on best value (TCO) instead of low price)?
CONSUMING BETTER (concurrent procurement with design
engineering)?
SELLING BETTER (joint selling with suppliers)?
staffing the right people in the right positions - people make policy
detecting and recovering from fulfillment errors automatically, before
your customers do?
using a supplier selection & approval process? Formal agreements?

13. Michael McCracken
A results-driven executive problem-solver with a strong record of
improving cash flow. Highly successful implementing Supply Chain
Management, Purchasing, Operations, and Strategy improvements.
Primary industries served are oil & gas, industrial machinery, aerospace,
automotive, electronics.
Mr. McCracken earned a MBA from Auburn University and a BS Industrial
Engineering from Northwestern University.
MiCyn LEADERSHIP
Management Consultancy

14. Cell: (814) 341-0168
email: micyn2@gmail.com
MiCyn CONTACT US
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