Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.
In the following sections I will propose a supply chain strategy which will align company goals and initiatives increasing efficiency and driving down cost thereby creating a sustainable competitive advantage through the implementation of a synergistic supply chain strategy.…show more content…
In this section I will identify three metrics to implement in the manufacturing process.
Lead time is the amount of time it takes to produce a product and have it available for end user consumption (Vermorel 2011). This metric will be very telling as it measures the capability of the supply chain to meet the demand from the consumer. By keeping a reasonable lead time the company will avoid outs and have an accurate measurement about their total supply chain capabilities.
Lead time involves the manufacturing, timing, supply of raw materials, distribution and sales. Lead time gives an accurate depiction of the overall strength of the supply chain and is an excellent metric in determining the effectiveness of planning and execution of supply chain goals and initiatives.
The average lead time of a corporation is 15 weeks from production to consumption. Benchmark firms have a lead time of 8 weeks which is the goal for the supply chain (Heizer & Render 2010). The 8 week number will be achieved by analyzing opportunities to streamline the process thereby creating efficiencies and driving down the amount of time it takes to produce and ship products. Setting a goal for an 8 week lead time will give the firm an opportunity to assess their forecasting and production capabilities presenting a way to identify and address inefficiencies.
Number of shortages per year:
Number of shortages per year is the number