The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. The organizations that make up the supply chain are “linked” together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply chain.
TOOLS FOR A SUSTAINABLE SUPPLY CHAIN
It’s not enough to manage your own operations in an environmentally and socially responsible way — you also need to think about your supply chain. Daunted? You’re not alone. Most of our clients ask us to help with some aspect of “greening” their supply chain.
SUPPLIER CODE OF CONDUCT
Develop a set of clear expectations that align with international best practices: labor and decent work, human rights, environment, health and safety, confidentiality and privacy, and grievance procedures.
EVALUATION AND AUDITING
Integrate sustainability into your new vendor evaluation process. Create a system of spot-checks using internal and third-party auditing teams. Understand common problems in your value chain, and mitigate your risk!
Figure out what sustainability risks are lurking in your supply chain. Collect sustainability data from suppliers that helps you make better decisions. Develop partnerships that help BOTH parties achieve their goals. CIG Group offers an executive advisory program specifically tailored to the needs of procurement executives, as well as on-site supply chain consulting services supporting all facets of procurement and supply chain management, including:
- Organizational design, encompassing options such as procurement outsourcing, off shoring, and shared services.
- Purchase-to-pay process design and implementation, including benchmarking, gap analysis, and business process change management.
- Talent management, oriented toward critical skills like supply market intelligence and supplier relationship management.
- Selection and implementation of supply chain IT systems.
- Network and inventory optimization
- Workforce analysis
- Site selection
- Logistics outsourcing
- Facility design
- Transportation management
- Supply chain visibility
- Performance analysis
Real value. Delivered.
We use this expertise—along with market insights, real estate forecasting and a strategy-driven approach to transactions—to save supply chain clients an average 5-15 percent in total operating costs. Our supply chain consultants complete an intense in-house training, accredited by the Council of Supply Chain Management Professionals (CSCMP). Many are members of CSCMP, the Warehouse Education Research Council (WERC) and the Association of Operations Management (APICS).