Common Supply Chain Questions
- "What does Sarbanes-Oxley (SOX) have to do with the supply chain? " ANSWER
- "What can we do about rising transportation costs?" ANSWER
- "What's the best approach to post-merger consolidation of supply chain operations?" ANSWER
- Submit your question to TranSystems | ESYNC's experts.
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Q: What does Sarbanes-Oxley (SOX) have to do with the supply chain?
A:Sarbanes-Oxley Section 404 requires that companies establish and maintain an adequate internal control structure and procedures for financial reporting; and, that management report annually on the effectiveness of that internal control structure and associated procedures for financial reporting. A solid supply chain infrastructure coupled with well-documented procedures and systems that monitor performance while addressing exceptions as they occur, can make a significant contribution to meeting SOX requirements, not to mention driving operational efficiency. If your inventory control procedures are not well documented or your standard operating procedures (SOP) are in need of an update, contact TranSystems | ESYNC to learn how our methodologies and consulting expertise can benefit your company.
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Q: What can we do about rising transportation costs?
A: You may not be able to do much about rising fuel costs or driver shortages. However, working with TranSystems | ESYNC’s supply chain experts, you can address and find solutions for transportation-related supply chain challenges :
Shipment & load consolidation- Inbound/outbound load optimization
- Appointment scheduling
- Backhaul opportunity identification
- Carrier selection, rating & load tendering
- Shipment status tracking
- Carrier performance measurement
During assessment of your transportation operations, TranSystems | ESYNC’s team of transportaion experts will help you to identify those opportunities that hold the greatest potential for reducing costs without sacrificing service levels. Contact TranSystems | ESYNC today to learn how we can bring value to your transportation initiatives.
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Q: What's the best approach to post-merger consolidation of supply chain operations?
A:: Start by taking a macro-level approach to understanding the cost and performance characteristics of the current supply chain network. The use of strategic modeling software to simultaneously consider all elements of your network makes this task possible through the use of “what if” analyses by providing actionable recommendations with savings targets that are detailed and attainable. Today’s strategic modeling tools are extremely robust, with user friendly graphical interfaces, reporting and mapping tools that produce solid, reliable results. These tools are capable of modeling your entire logistics network, including:
- inventory levels and item mix by facility ,
- service requirements by customer,
- transportation costs by lane,
- fixed and variable facility costs,
- raw material and finished goods sourcing and
- manufacturing costs in a single model with all of the detailed constraints required to accurately represent your business.
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Conducting a Supply Chain Network Optimization (SCNO) project can address many strategic questions such as::
- What are the optimal number, sizes and locations of manufacturing and/or distribution facilities?
- If we close a facility, will we have enough capacity at our other locations to meet projected demand? Should we outsource necessary additional capacity or expand existing facilities?
- Should all of our Distribution Centers be full-line or should we employ different stocking strategies?
- What will be the impact of a potential acquisition on our network and how should we rationalize the two networks?
- Should we always source demand for a customer from the same location or should we employ dynamic sourcing for some or all of our products?
- What should our network look like over the next three to five years?
- Where should we add incremental capacity? Should we upgrade a line, add a new line or add a new facility?
- What is the likely impact of changing market conditions? Of adding new products? Of changes in regional demand? Of adding new accounts?
The answers to the questions listed above and myriad other scenarios will provide a start to the strategic roadmap for streamlining your logistics network post-merger/acquisition activity.
Through Supply Chain Network Optimization studies, TranSystems | ESYNC helps clients improve customer service levels, cut costs and establish a network to support future business endeavors. For real-world examples of the work we've done for clients, browse TranSystems | ESYNC Success Stories. Contact TranSystems | ESYNC today to learn more about how we can add value to your supply chain through Supply Chain Network Optimziation.
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