Supply Chain Management (SCM) is a term that gained prominence in the high-tech industry during the 1990s and refers to managing the flow of materials and products from source to user. In most all types of manufacturing, effective SCM can provide companies with a significant competitive advantage.
ATI's Always-On-Line Hosted systems now offer a full range of very affordable SCM solutions to provide you with this competitive edge.
Today, most high-tech companies work with equivalent technologies, produce the same high quality products and compete pretty equally in terms of pricing. The competitive advantage from focusing upon high quality at a great price is not as apparent as it once was years ago.
The most significant competitive edge is gained when corporate supply chain manager develop strategies to improve both customer service and business process efficiencies to gain market share and reduce costs. They view the supply chain as an interrelated function and focus on cross-functional processes. Companies that organize for this SCM functional integration regularly out-perform those organized primarily for functional excellence.
In the integrated SCM model, there is a direct relationship between how fast information moves from customer to supplier and how quickly materials and products move forward through the supply chain.
Techniques for SCM improvement typically means companies must re-engineer their business processes to improve logistics. They must focus on processes, not on functions. Quantum improvement, not incremental change, is crucial. Gradual changes cause companies to become slow to react. They must see the need for change before symptoms of poor performance appear, and this often involves a change in the corporate IT system. The emphasis must be on speed and on simplifying underlying business processes.
Important elements in ATI's Hosted SCM Systems include:
- Materials Management: The planning, purchasing and managing of inventory;
- Forecasting: Using product sales forecast to help plan inventory;
- Master Production Scheduling (MPS): A tool that uses sales forecast and customer orders to plan inventory and production schedules;
- Material Requirements Planning (MRP): A tool that plans both the purchase of inventory and production schedules based on specific input from the master production schedule;
- Inventory Management: The management of physical inventory in warehouses, stockrooms and in production work-in-process (WIP);
- Purchasing and Supplier Management: The procurement of materials and the qualification and development of mutually beneficial relationships with suppliers;
- Logistics: The management of the transfer of inventory and products from supplier to customer along the supply chain; and
- Information Management: The management of information from product document management (PDM) systems to back-office ERP and front-office CRM systems to B2B software applications.
Contact us right now if you would like more information about our SCM services.