A contract manufacturer turns inventory 3.6 times. A retailer turns inventory 4.1 times. A wholesaler turns inventory 4.4 times.
A supply chain is not a series of links forged together for a common purpose. That is a nice image. However it minimizes the reality of the chain and how each link in that chain must design its own logistics process to function within the chain.
Outsourcing of supply chain management tasks has been functioning at a similar approach level for years.
Being able to understanding and identify waste then requires removing that waste. The initial question then is where and how to begin implementing lean supply chain management.
A major mass merchandiser has decided to go leaner with its inventories.
Supply chain management (SCM) is one of the key drivers in today's business world with offshore sourcing, foreign competition and global markets.
Lean is about flow and the elimination of waste. Waste can be defined as anything that does not add value to the product - anything that the customer would not want to pay for.
Supply chain management has grown in company importance and value contribution from its roots as "shipping and receiving".
Supply chain management was designed to take waste out of supply chains-waste as to excess inventory, time and cost.
Outsourcing is having work or an activity done by people who are not employees of the company. It is not new in logistics. Outsourcing existed before the topic earned a name and became business chic.
