Learning to balance growth, risk and a long supply chain can be quite a challenge with startups who need to manufacture something. Keep production cycles short but cost-effective is incredibly difficult. Finding suppliers who are willing to work with you is also a challenge.
Learn to Balance the Supply Chain Challenge of Startup
Learn to balance the
supply chain challenge
of startup
Introduction
Learning to balance growth, risk and a long supply chain can be quite
a challenge with startups who need to manufacture something.
Keep production cycles short but cost effective are incredibly difficult.
Finding suppliers who are willing to work with you is also a challenge.
Challenges
Lead time for the volume
Overall cost management
Solutions
Work with the manufacture
Reduction of inventory on the receive side
Increased the finished goods inventory
Adjust and be flexible to changes
Lead Time For The Volumes
They simply were not able to meet the lead time for
the volumes and were losing great growth potential.
Overall Costs Management
The challenge that Nota-Nota faced was how to offer greater
quantities without incurring greater overall costs within the
supply chain.
Work With The Manufacture
Working with the manufacture, the team identified a win win by
reducing the initial inventory levels but transferring more inventory
into finished goods.
Reduction Of Inventory On The
Receive Side
On the reverse side, the reduction of inventory levels arriving saved
storage space and with the finished goods taking up less space than the
individual parts,
The supplier was able to save on storage overall.
Increased The Finished
Goods Inventory
The finished goods inventory was increased by 70% to respond to a
single high volume demands,
But the hope is that by catching one or two of these demands, larger
growth will continue which in turn will reduce the short term risk.
Adjust And Be Flexible To
Changes
It allows for greater flexibility and faster responsiveness to customers
demands.
A supply chain that can’t meet the customer demand is not very lean –
you just need the ability to continually adjust and be flexible to changes.
Contact us
Phone: (34) 683Th an3k y2ou7 605
E-Mail: [email protected]
Website: www.leanscape.io/
Leanscape
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