Supply Chain Improvement
Globalisation, low cost sourcing, transport costs, continued focus on improving core competencies whilst outsourcing, and demand for supplier flexibility are all leading to the increased complexity of supply chain networks. Achieving and then sustaining an efficient supply chain with an optimal strategic balance between low cost and high service levels becomes ever harder.
What we do
Newton works with its clients to attain operational success in their supply chain. We have experience in a wide range of sectors and supply chain strategies. All projects are focused on the specific area of the supply chain where there is most opportunity to reduce cost, maximise profit or gain competitive advantage.
Newton work hands on with the local team to drive a step change in operational performance. Using our rigorous analytical approach we identify hidden opportunities, developing solutions and implementing improvements that have a measurable and sustainable result above internal targets. Identifying the largest opportunities by financial value and fixing them with permanent solutions means that we rapidly deliver bottom line savings.
Assessment
Typically we will perform an initial assessment of a client’s supply chain to identify opportunities, followed by the full project implementation.
Supply Chain Assessment
Assessment focused on a specific business function or functions, for example, procurement or logistics, to identify opportunities for cost reduction or operational improvement as appropriate.
Total Cost of Ownership (TCO) Assessment
All businesses purchase particular materials or services that are high risk (e.g. the missing screw that stops production) or are difficult to manage. The TCO methodology assesses the total cost of the area of spend across the whole business resulting in the ability to make supply chain decisions that maximise profit whilst minimising risk. In large complex businesses, understanding the TCO frequently shows that purchase price accounts for less than 50% of the total cost. This insight makes visible potentially millions of pounds worth of untapped opportunity that doesn’t rely on squeezing supplier prices.
To find out more about the TCO Assessment click here.
Implementation
The implementation phase would then focus on the appropriate combination of the following areas:
For more information on our work please contact us.