Supply Chain Consultants and the production process
26/08/2011
http://www.hillman-consulting.co.uk/supply-chain/supply-chain-consultants.html
Securing an order from the customer is just the start of the supply chain process. The Supply Chain Consultant must then locate and secure parts and components for the end product at the lowest possible cost base – track all movement of the parts and components until the product is completed and deliver to the end customer.
Other Influences Affecting the Supply Chain
Supply Chain Consultants need to take account of any other factors that affect the supply chain. Chief amongst these are market demands. A product in great demand usually means that raw materials go up quickly. Emerging worldwide markets with growing middle classes have impacted significantly on the demand for luxury goods. A good example of this is the carpet industry where an increase in income and a growing middle class has meant that there has been an increase in demand for top end carpet. In addition, manufacturers in growing economies have been developing their carpet producing skills meaning that this has also impacted on the demand for and therefore the price of raw material chief of which is wool which in the last 3 years has quadrupled in price.
So Supply Chain Consultants must keep an eye on and try to source lowest cost base raw materials where appropriate. Transport and the cost of transport plus timely delivery mist also be taken into consideration. All these aspects are liable to fluctuation both suddenly and dramatically and Supply Chain Consultants must prepare for this accordingly.
