Supply Process Modelling
Supply process modelling enable you to raise efficiency levels and lower production costs
A supply chain forms the centre of operations of any business manufacturing goods. The supply process starts with the procurement of materials for production, ends with the delivery of the final product to the customer and includes all related activities that happen in between. When looking at increasing the profitability of a business, this would usually be one of the main areas of focus. For this reason it needs to operate as efficiently as possible, keeping the manufacturing cost down. Improving efficiency will often be prompted by or the result of a specific strategy. Supply process modelling plays a vital roll in the creation of this strategy as it creates the ideal process which is then compared to the current process. The strategy will then implement the necessary actions to transform the current process into the ideal one.
Apart from being a yardstick to measure current processes against in order to improve efficiency, supply process modelling is also a very important component of another factor that directly links to the profitability of the business. The balancing of supply and demand. The idea is to keep these two figures as close to each other as possible, without ever overstocking or under-supplying. In conjunction with the forecasted demand figures, a supply process model will be created which will dictate the changes needed in the current process in order to maintain future supply and demand balance, while maintaining high levels of efficiency and profitability. It is therefore extremely important to pay careful attention and do thorough research when creating this model.
By providing the ideal model whereby current flaws or inefficiencies can be discovered, supply process modelling also forms an integral part in the lead up to the process of supply chain optimisation. This could include the optimal placement of the inventory within the supply chain and minimizing operating costs, such as manufacturing costs, transportation costs and distribution costs.
Business Modelling Associates are experts in the modelling of business processes, including supply process modelling. Visit businessmodelling.com to find out more on how we can help you optimise your business.
