Simplify your supply chain management

Don’t let an overly complex supply chain hamper your business.

Outsourcing end-to-end supply chain management as a solution to manage complexity.
woman holding pen to illustrate simplified supply chain management

When does supply chain management (SCM) complexity become too much? Whether it’s for just a few components or parts, or complete and complex assemblies, we see three common scenarios:

  • Your business expertise resides in something very different than manufacturing. Supply chain management isn’t a core internal skill set, nor has it been important before. All of this feels new; you don’t have an underlying strategy.
  • Supply chains grow rapidly, especially when a small- to medium-size firm begins expanding. In those early days, supplier consolidation isn’t a priority for the business because the attention is focused on meeting increasing consumer demand for products.
  • You’re a large enterprise and work with a web of numerous suppliers, all of whom require time and resources from your team members. All too often, it’s become overwhelming and unmanageable.

No matter which category your business falls into, NMG can help take control of your SCM, providing you with a single point of contact and alleviating the burden of an unruly supply chain.

Recognizing—and simplifying—an overly complex supply chain

If you recognize some of the below symptoms happening in your organization, it may be time to reach out to NMG to discuss our SCM services:

  • Your SCM is costly to sustain and increases your total acquisition costs.
  • The chaos creates unnecessary risks for your organization.
  • Your team gets buried in the details.
  • Decisions become more reactive and space for strategic planning diminishes.

Learn more about the benefits your organization will gain when you outsource end-to-end supply chain management with NMG.

Create a more efficient configuration for your supply chain.

By looking at your organizational needs, NMG will consider your current supplier relationships alongside our vast network of suppliers and identify the most efficient configuration. As an example, instead of sourcing 5,000 units of a part or product from 10 or 20 vendors, the same products or parts can be sourced from 1 to 3 suppliers. We’ll ensure you still benefit from redundancy in your supply chain while simplifying your AVL significantly.

Reduce pressure on your staff.

When your company is struggling under the burden of multiple points of contact and can’t effectively reduce the vendor management burden, the next option is to get more support. This often involves diverting more resources to internal supply chain management and/or hiring more staff—unless you choose an outsourcing partner to assume comprehensive control over your supply chain, manage your supplier and logistics provider relationships, and manage supply chain complexity for your firm. Rather than straining current employees or bulking up on staff, your business enters into an agreement that alleviates the management burden without impeding other areas of your business.

When you contract with an SCM partner like NMG, your team’s communications become significantly more streamlined. We save you the headache by managing your supply chain complexity and transforming your intractable number of suppliers into a single point of contact. An effective SCM partnership greatly reduces pressure on your staff by bringing clarity, order, and efficiency to your supply chain relationships, without imposing any additional work or stress on your team. It alleviates capacity burdens, giving everyone more room to breathe and restoring a sense of control.

Consolidate your AVL for a more efficient supply chain.

While supplier consolidation provides tremendous cost-saving and risk-reducing opportunities, it also greatly benefits your supply chain productivity. Involving an SCM partner to reduce your number of suppliers is a supply chain management strategy that can be implemented within any industry and aims to reduce the quantity of vendors while simultaneously working to maintain or even improve upon supplier quality.

With supplier consolidation, you can reduce the number of intermediaries needed throughout the process, avoiding many of the common pitfalls of supply chain mismanagement, such as surprise losses, higher costs, and wasted time. Let’s dig in deeper on some of the ways a consolidated AVL creates a more productive supply chain:

  • Simplified processes. Dealing with fewer suppliers simplifies procurement processes, reducing the administrative work associated with managing multiple relationships, invoices, and shipments.
  • Enhanced quality control. Working with a smaller number of suppliers makes it easier to enforce and maintain consistent quality standards. This is crucial for ensuring that the products or components meet the required specifications. Regular audits and quality control measures are more manageable when dealing with a reduced number of suppliers, as well, allowing for more effective monitoring of production processes.
  • Logistical efficiency. Fewer suppliers often means simpler logistics and transportation management. This can lead to more efficient warehousing, distribution, and transportation, reducing lead times and overall supply chain cycle times. With a consolidated supplier base, it becomes easier to manage inventory levels, reduce excess stock, and maintain a leaner and more responsive supply chain.
  • Strategic sourcing. Supplier consolidation enables organizations to make more strategic decisions about sourcing, allowing for better alignment with organizational goals and market conditions. It may also provide more flexibility in adapting to changes in market demand, technological advancements, or shifts in the business landscape.
  • Improved supplier relationships. By reducing the number of vendors in your supply chain, you enable deeper and more strategic relationships with key suppliers. This allows you greater negotiating power and influence when it comes to pricing and service levels. It also ensures assurance of supply by increasing on-time delivery and minimizing supply disruptions. Deepening your supplier relationships can lead to better communication, collaboration, and understanding of each other's businesses. Read more below about how supplier collaboration can create process improvements, efficiency gains, and innovation to positively impact your supply chain.

These benefits are very enticing, but it’s important to remember that supplier consolidation must be done carefully and purposefully. It's essential to manage the consolidation process strategically to avoid excessive dependency on a small number of suppliers and to continually monitor and assess performance. NMG has the resources, expertise, and network to help you become more efficient and competitive.

Gain a competitive advantage with Collaborative Planning, Forecasting, and Replenishment.

Collaborative Planning, Forecasting, and Replenishment (CPFR) is a business practice that involves collaboration between buyers and their suppliers to enhance the efficiency and effectiveness of the supply chain. CPFR aims to improve the accuracy of demand forecasts, streamline planning processes, and optimize inventory levels by fostering communication and cooperation between partners.

NMG can incorporate CPFR in your supply chain by facilitating the following key components:

  • Joint Business Planning (JBP). We collaborate with your team and your suppliers to develop strategic plans that align with your business objectives. This involves sharing information about promotions, product launches, and other relevant events to ensure all parties are aligned toward common goals and deadlines.
  • Collaborative forecasting. Engaging in demand planning and forecasting can help a business get its supply in sync with demand. Demand planning technology can ‘sense’ demand by analyzing real-time data and market conditions. By sharing and integrating sales and demand forecasts with your suppliers, everyone gains a more accurate and comprehensive understanding of future demand for products. In the end, you gain a more accurate forecast and can plan better accordingly. This collaboration helps to minimize the bullwhip effect, where small fluctuations in demand can lead to amplified effects upstream in the supply chain (see illustration below).

 

  • Collaborative replenishment. Based on the collaborative forecasts, we work together with you and your suppliers to determine optimal inventory levels and replenishment strategies. This involves coordinating orders, deliveries, and inventory management to ensure that products are available to meet customer demand. Finding the right balance between just-in-time delivery and just-in-case inventory helps you avoid stockout situations while also minimizing excess inventory. Click here to learn more about NMG’s collaborative inventory management solutions.
  • Information sharing systems. CPFR often involves the use of advanced information technology systems to facilitate the sharing of real-time data between trading partners. These systems may include electronic data interchange (EDI), shared databases, and other collaborative
  • Performance measurement. NMG works with you and your suppliers to establish and measure key performance indicators (KPIs) to identify areas for improvement and to ensure that the collaboration is contributing to overall supply chain efficiency.

CPFR is often associated with supply chain visibility, trust-building, and strong communication channels between actors in the supply chain. NMG helps you successfully implement CPFR through our commitment to information sharing and collaboration, giving you a competitive advantage through a more responsive and efficient supply chain.

Get end-to-end supply chain visibility.

NMG helps you deal with supply chain complexity by providing end-to-end visibility. A “fully visible” supply chain automatically feels less complex because it gives you a comprehensive understanding of your entire operational landscape. By leveraging technologies like data analytics and supply chain management software, NMG helps companies map their supply chains, identify suppliers operating at different tiers, and pinpoint potential bottlenecks. This heightened visibility enables proactive decision-making, helping you optimize processes, enhance collaboration with suppliers, and ultimately streamline your supply chain operations.

Enhanced supply chain visibility empowers you to react promptly to changes, identify inefficiencies, and anticipate potential disruptions. It also facilitates improved coordination among different elements of the supply chain, fostering a more agile and responsive network. With a clearer picture of the entire supply chain ecosystem, NMG can help you implement strategic measures that enhance efficiency, monitor performance, and allow you to better adapt to dynamic market conditions. In essence, a focus on visibility provides a foundation for proactive management of supply chain complexities, allowing companies to navigate the intricacies of global operations with greater precision and control.

Why NMG?

NMG offers customized supply chain management services tailored to your unique business circumstances to help you simplify and optimize your SCM. If your supply chain is costly to sustain, poses unnecessary risks, overwhelms your team, or hinders strategic planning, it may be time to consider reaching out to NMG. Our commitment to end-to-end supply chain visibility ensures that you gain a comprehensive understanding of your operational landscape, empowering you to proactively manage complexities and get more supply chain visibility.

Our specialized expertise in design support, global sourcing, outsourced manufacturing, and supply chain management allows us to successfully manage everything from simple legacy component manufacturing to complex end-to-end solutions. We streamline communications, manage complexities, and transform a multitude of suppliers into a single point of contact to give you a competitive advantage through a more responsive and efficient supply chain.

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Case studies

See real-world examples of how NMG has helped customers across the full spectrum of the supply chain, from design to delivery.

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