Supply Chain Management — Rationalization
CRL brings the right information and knowledge to the table to help define strategy and validate decision-making. That means we can provide the answers and perspectives you won't get anywhere else.
Together with the customer, CRL executes comprehensive strategic sourcing initiatives from purchasing policy deployment to the development of target pricing through to supplier performance measurement. Most importantly, CRL develops and implements continuous improvement programs between suppliers and manufacturers. The number of suppliers we have should be minimized in order to reduce complexity and the associated costs.
When performing this analysis, the key elements to look at are:
- Supplier location.
- Supplier order to ship lead time.
- Supplier to plant transportation lead time.
- Supplier quality of service compliance.
- Supplier quality of product compliance.
The better the relationship with our suppliers, the fewer inventories we should have in the system. The more we can trust our supply base, the fewer inventories we will need to carry. Variation is what causes the need for inventory.