Supply Chain & Operations Strategy
Supply Chain Design & Engineering
Supply Chain Planning
Supply Chain Execution
Supply Chain Systems
Supply Chain Execution
Making it happen downstream with flawless execution is where the rubber hits the road for all businesses. A key core competency of SCAP is supporting our clients with not just the ideas on what to do but actually taking those ideas and being accountable for implementation. Whether its’ leading an outsourcing project for a client, implementing a new transportation management solution, project managing a DC move or supporting implementation of DC operational improvements, we have the seasoned expertise and change management resources to successfully support these initiatives. Where appropriate we also support operational turnarounds, where we provide leadership and expert direction in those specific engagements.
SCAP focuses on the following specific professional services in helping clients create the supply chain vision or roadmap and more critically how it will be executed.
- 3PL RFP Management and Implementation
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We offer full support to our clients once there has been a strategic decision to outsource with full and deep subject matter expertise. We deploy an approach and process that ensures diligence and rigor that not only best leverages the marketplace, but also facilitates the best fit for our client as their ultimate selection. Our process builds steps to ensure that the most successful and demonstrated service provider proves itself and earns the right to our clients business, through the exercise. Where needed, we also support implementation and project management leadership on behalf of our client.
We typically help our clients answer the following questions
- How can we ensure that we absolutely make the right choice in the selection of a 3PL?
- What risk mitigation techniques should we deploy in rolling out the transition to a 3PL solution?
- How should we structure pricing that is an incentive to the 3PL but also supports non-performance financial impacts?
- How do we drive a performance driven contract with our 3PL?
- What are the benefits of us owning our own real estate in this arrangement?
- What should be the performance scorecard used to help manage the performance of the services?
- What are some of the transition strategies that could be used to ensure the human resource considerations are managed for success?
- What should the communication strategy be with our employees?
- Logistics Optimization
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We support our clients in helping to quantitatively and qualitatively assess their current Logistics operations. This would include Inbound and Outbound Transportation Management as well as Distribution or Warehousing Operations. Based on the assessment and state of health, we then develop recommendations and an implementation roadmap to drive implementation for improvements in performance and efficiencies.
We typically help our clients answer the following questions:
- How does the efficiency of our distribution operations compare when benchmarked to other similar operations?
- What would be the roadmap and set of activities to improve these efficiencies and in what time frame can they take place?
- What tactics can I use in controlling better inbound planning to our DC’s and how can I leverage the inbound carriers to provide visibility?
- How does my inbound and outbound freight spend compare to other similar benchmark volumes and spend?
- How can I leverage specific WMS or TMS capabilities to improve performance and efficiency and what would be the approximate investment that would be required?
- Operations Turnaround
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In specific situations, clients will use our expert services to lead a business turnaround and develop a plan to recovery where a company has encountered distress. We would focus our skills and resources, both from a leadership and technical perspective needed in the supply chain, including the following areas, Inventory Planning, Procurement, Distribution Operations and Transportation.
- Transportation Spend Management
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Transportation as a key supply chain element has become both strategically and tactically a challenge for most companies over the last few years, due to unprecedented energy and fuel costs. Companies are being forced at a strategic level to better understand how to best configure their distribution networks.
Macro trends are emerging from these dramatic changes in rising transportation and logistics costs and these trends will impact how buinesses will have to manage their supply chains in the future.
Macro Trend #1: Network Optimization Modeling to Balance the Rise in Transportation Costs vs. Inventory Investment / Deployment and DC Facility Costs
- As Transportation is moving closer to being 70% of total logistics costs, centralized distribution systems, depending on a "high miles" network is not optimal
- Companies need to examine their Distribution Network (Sourcing / Inventory Deployment Points / Customer Ship To's) to determine with high cost transportation what an optimal network may look like, cost and understand potential impact to service changes
Macro Trend #2: Greater Use of 3PL's Infrastructure / Assets to Enable Inventory Deployment Closer to Consumed Use
- Companies will need to use the assets of others (Transportation providers / 3PL's) to enable deployment of inventory closer to its point of use and rely on these external assets to enable lower transportation costs and efficient inventory deployment
Macro Trend #3: Lowest Cost Country Sourcing Strategies Offset by Rise in Transportation Costs (Container Costs)
- The cost of shipping a standard container from East Asia to the U.S. Eastern seaboard has already tripled since 2000 and will double again as oil prices head towards $200 per barrel
- At $200 per barrel, we are back at "tariff" rates not seen since prior to the Kennedy Round GATT negotiations of the mid-1960's
- As oil prices keep rising, pretty soon, those transport costs start cancelling out the East Asian wage advantage - they already have in steel. Soaring transport costs have already more than eroded the wage advantage and suddenly Chinese-made steel is uncompetitive in the U.S. market
Leveraging the transportation service provider marketplace professionally with the right analytical output, format as well as being armed with benchmark rate / volume / class is how we help our clients achieve a successful and cost effective transportation management program.
We typically help our clients answer the following questions:
- How do we compare when we benchmark our current spend, volumes and shipment characteristics to other similar best practice businesses?
- What is the best process to professionally represent our company to the transportation service provider marketplace to leverage our spend and volume?
- What negotiation strategies should we deploy to ensure we maintain a high level of quality yet ensure we receive fair market pricing?
- What technical strategies can we use to offset fuel surcharges and accessorial charges and be able to monitor any impacts on an immediate basis?
- Which are the carriers that we should be dealing with and who can bring the best informational and performance monitoring tools?
