CONNECT Conversations  

Tools- Supply Chain

Ron Moore | Contributing Host, RELIABILITY CONNECT

The world is currently experiencing substantial “supply chain” problems, resulting in delays around the world in the production and delivery of goods to customers.  In this session we’ll be introducing basic supply chain principles, using two models:

  1. Supplier – producer – customer. This is a simplistic model that discusses how these three elements in the supply chain can work together to maximize production, and minimize costs throughout the chain for better net chain performance.  This model becomes increasingly complex as you add more suppliers, intermediate producers, and customers.  We only touch on distribution systems and the effects of a pandemic.
  2. Customer Focused. In this model, we’ll be looking at the supply chain from a producer’s point of view, but one focused on customer needs, and aligning products and services to them.  In this model, we’ll look at understanding ALL costs throughout the supply chain, not just manufacturing costs, e.g., distribution, servicing, marketing and inventory costs, and how to parse and manage customers into groups that provide for greater profits by using customer and product decision making models.

Unfortunately, we will not be offering solutions to the world’s supply chain problems.

The companies who are best at this often have a visual map of their supply chain on site. This includes:

  1. The companies from whom we purchase the materials to make our products and the point of contact for various issues, quality, quality, delivery.
  2. The companies used to transport from our suppliers to our manufacturing facility – This would include point of contact for each transport company
  3. The companies who transport our products to various distributors along with point of contact
  4. The distribution companies who then transport our products to those who make direct sales.
  5. The companies who sell our products to end users – along with point of contact
  6. The expected timeline for each step to point of sale

The most important thing to remember in terms of supply chain is the end user is never interested in whose fault it might be. They just know they wanted a ACME thing-a-ma-bob and it was supposed to be in their hands two days ago. When they can’t get it, two things will always be true….

  1. They will look to get it from someone else – if you’re lucky
  2. They will look to purchase a similar one from your competitor.

We hope you enjoy this episode!

Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments

About the Author

Ron Moore Contributing Host, RELIABILITY CONNECT
  • Author of 1) Making Common Sense Common Practice; 2) What Tool? When? A Management Guide; 3) Where Do We Start Our Improvement Program?; 4) Business Fables & Foibles; 5) A Common Sense Approach to Defect Elimination; 6) Our Transplant Journey; and 70+ papers
  • Authority on strategies and practices for operational excellence
  • Clients in North & South America, Australia, Europe, Asia, Africa,
  • Managing Partner of The RM Group, Inc. for 27 years
  • Prior to consulting – President of Computational Systems, Inc. (CSI)