SUPPLY CHAIN MANAGEMENT
“DISCUSSING WITH YOUR POTENTIAL NEW SERVICE PROVIDER
WHETHER THEY OFFER OPTIONS SUCH AS OVERNIGHT
INSTALLATIONS, BIN PRE-STOCKING OR PRE-LABELLING COULD
HELP YOU TO ACCESS THE COMPONENTS YOU NEED WHILE
MINIMISING TIME ON SITE.”
running. Even the smallest,
cheapest component can
cause production downtime
if not delivered on time,
which in turn can damage a
manufacturer’s own reputation
if assemblies are not delivered
on time.
CONSOLIDATION
In 2019, market research
expert Vanson Bourne found
that UK businesses work with
an average of 2,598 suppliers,
around 50 per cent of which
are international. Even before
COVID-19, 84 per cent of
businesses were struggling
to manage supply chain
risk. Shorter, simpler supply
chains could help streamline
things for the future, partly
by reducing the number of
possible points of failure.
Consolidating your suppliers,
for example by turning to
vendor managed inventory,
could be a new way to run the
business, meet budgets, margin
enhancement expectations
and production KPI’s and help
maintain revenues.
AGILITY
As businesses return to work,
they can move to new ways
of working, or turn to new
technology to help employees
work safely and productively.
Social distancing may mean
more processes move from
paper to online processes via
EDI and MRP/ERP integration
— electronic ordering, for
example, means that orders
can be placed and processed
without anyone having to
physically touch them; accurate
and efficient.
Discussing with your
potential new service provider
whether they offer options such
as overnight installations, bin
pre-stocking or pre-labelling
could help you to access the
components you need while
minimising time on site and
maintaining effective social
distancing.
Technology can also be used
in other ways to help manage
inventory on a manufacturing
side. Consider this example.
A manufacturer has trouble
sourcing PPE for staff to
work safely on site. When
PPE is in stock, it disappears
quickly. Implementing
a vending solution can
help prevent excessive
consumption of consumables
and introduce ownership so
that manufacturers can safely
and effectively manage PPE
distribution.
RELATIONSHIPS
Small and medium
manufacturers may find it
particularly difficult to get
hold of the parts they need, as
they may not carry as much
purchasing leverage or may not
meet the minimum order value.
Establishing relationships with
larger supply chain businesses
may help smaller businesses
to benefit from the leverage
of a partner, one that orders
regularly and orders big. TFC
for example, passes on cost
reductions to its customers
by purchasing on behalf of
numerous businesses from UK
distribution, UK wholesale,
European and Far East
partners.
The supply chain and
logistics industry is clearly
in for a shake-up. There
is currently no clear and
comprehensive solution to
carry British manufacturing
forward. However, by sharing
our knowledge, skills and
expertise, we can develop
creative, effective solutions
together.
TFC is one of the leading
suppliers of engineering
products in Europe, with an
unrivalled reputation over 50
years for providing exceptional
design development, the best
components and bespoke
production line inventory
solutions, all from one
organisation. Our customers
experience exemplary customer
service and added value
technical solutions to help
them achieve breakthroughs
in product advancement,
innovation and significantly
raised standards of
manufacturing efficiency.
Visit the website for more
information about TFC’s
vendor managed inventory
solutions, or call 01435 860349
to speak to supply chain
specialist.
TFC
www.tfc.eu.com
01435 866011
34 Issue 4 2020
/www.tfc.eu.com