In sales-driven organizations, supply chain leaders constantly struggle with the battle to balance the constant chase for revenue growth and the pressure to drive down costs. As decisions are made to increase sales, tradeoffs often occur between inventory levels, service levels, and cost. Communicating the impact of those tradeoffs to decision makers and ensuring an understanding of cost and performance implications of supply chain decisions is a challenge. Organizations aren’t always aligned around monthly demand, supply, and financial forecasts. And balancing geo-political environments, cost-to-serve, and lead times will continue to be an ongoing juggling act.
Strike balance in your supply chain.
At TBM, we are seasoned professionals in enhancing the balance between service levels, working capital, and cost. By combining process rigor with technology, we enable better, faster decision making to improve cash flow and service levels while improving profits at the lowest possible cost-to-serve.
Our holistic, three-dimensional approach to supply chain improvement encompasses:
- Vertical integration and optimization up and down your supply chain
- Horizontal integration and cooperation across your different functional areas
- Fiduciary integration via modeling capabilities.
By considering these three dimensions of the supply chain, we help you better understand, control, and optimize your supply chain end-to-end for the lowest possible cost-to-serve.
We use this approach to address the following common business needs:
Inventory Optimization: Profitably reduce inventory and increase service levels.
Working with your buyers and planners, we model “what-if” scenarios to determine optimal levels of safety stock. We implement inventory optimization process rigor and tools to help you achieve your lowest possible inventory level and highest-level of margin at the product family or SKU level. With optimized inventory, you can enhance service to your customers while realizing a higher gross margin and enjoying a shorter cash conversion cycle.
Integrated Business Planning & Scheduling (S&OP): Match supply chain planning with execution.
We can help you integrate financial planning and budgeting processes with the S&OP to grow your top line and reduce your costs. Our approach includes managing supply constraints, establishing a formalized demand planning process, and ensuring customer collaboration. Your business benefits from a shorter cash-to-cash conversion cycle and greater forecast accuracy at the SKU level. And your customers enjoy better service, too.
Supplier Management: Improve your sourcing process and increase in-bound supply chain visibility.
Our comprehensive approach to supplier management enhances every aspect of your sourcing process by focusing on supplier selection, performance management, and supply chain visibility. You’ll have a better understanding of supply chain data as well as quality and manufacturing processes at the supplier level. And you’ll enjoy improved collaboration and better contracts that reduce your total spend and average cycle times, while driving increased on-time deliveries and higher annual savings.
Network/Warehouse Operations: Optimize your manufacturing and distribution footprint and warehouse operations.
Producing the right product, in the right quantities, at the right cost, and in the right location is the key to reducing your cost-to-serve. We start with comprehensive analytics to determine the best footprint, flow, and location for your facilities. Then, we leverage Lean techniques and tools like slotting analysis and pick path optimization to streamline operations and enhance productivity. You win with a manufacturing and distribution network that supports customer delivery requirements at the lowest cost-to-serve, dramatically improving your gross profit margin.
Talent Development: Get the supply chain expertise you need.
We help your team develop and hone the critical supply chain planning and inventory skill sets needed to drive gross profit in your business. Through a combination of classroom training and coaching and modeling in real-life applications and scenarios, we teach your team how to leverage your existing ERP platform to make better and faster decisions. When your top supply chain talent has the fundamental skills to operate effectively, it can drive 5-10% improvements in gross profit and a 15-30% reduction in working capital.
Supply chain expertise combined with the right technology generates results fast.
As the proven leaders in operations management and supply chain consulting, our senior consultants know where to focus our attention to tackle your biggest supply chain issues and start generating results fast. We supplement our 25+ years of knowledge with the best technologies to support better, faster cost-to-serve decision making in all areas of your supply chain, from your physical footprint, to your sourcing choices, to your inventory levels. Working shoulder-to-shoulder with your supply chain leaders, we implement “what-if” modeling to assess the risks and advantages of strategy shifts and forecast the financial impact of decisions made around cost, service level, and working capital. Then, we execute your chosen strategy quickly and train your leaders along they way.
Reduce your cash conversion cycle and grow your gross margin.
By improving understanding, control, and optimization of the various elements of your supply chain, you can achieve higher service levels at a lower cost, reducing the need to make those tough tradeoffs. You can expect to see an improvement in your cash conversion cycle by as much as 50%, coupled with a gross margin percentage that’s 20% or higher than the industry average.