| SUPPLY CHAIN MANAGEMENT EVALUATION AND RE-ENGINEERING |
CKC will increase profits and decrease total cycle time via solutions that update and upgrade only a small portion f the supply chain, all the way through to a full reengineering of all processes. We apply the term supply chain all-inclusively; from the procurement of raw materials through to delivery, to the invoicing of the customer. Most supply chains are complex; many are cumbersome and onerous. Additionally the introduction of internet based commerce (e-commerce) has rapidly expanded supply chain complexity. New questions need to be raised. Is Electronic Bill Presentment and Pay (EBPP) a viable mode of collection? What level of phone service should augment a web based ordering system?
Throughout the supply chain, CKC will help you reduce complexity and increase efficiency. For the initial steps of the chain, we will perform a materials management audit to identify opportunities for more effective and cost efficient supplier relationships, and to streamline the company’s internal movement of goods. Product mix is an issue that has many repercussions throughout the supply chain, and can significantly affect customer service. CKC has extensive experience performing SKU (stock keeping unit) analyses to determine appropriate product mix, in total, and by warehouse. The result of this effort is not simply a new product mix, but also a procedure for carefully evaluating requirements for new SKUs. A project like this may be part of a larger inventory analysis, or a stand-alone effort. Other specific initiative targeting the beginning of the supply chain might include: creating a structure for purchasing operations that significantly reduces procurement times; and performing vendor searches and reviews.
Some clients require a more efficient network of warehouses and distribution centers. In these instances a rationalization of their distribution network is performed. Depending on the complexity, optimization or simulation models may be employed. Manufacturing operations are another tremendous area of opportunity. Utilizing Lean Manufacturing techniques and the Theory of Constraints, CKC will reconfigure shop floor layouts and devise level loading techniques to eliminate bottlenecks; and implement pull demand models across divisions.
At the end of the supply chain is the customer. The importance of understanding customer requirements is paramount in al supply chain undertakings. We have performed requirements analyses for dozens of enterprises, and apply this knowledge to each new engagement. CKC will implement a Collaborative Planning. Forecasting and Replenishment Program that ties raw material procurement through to sales forecasting and point of purchase reporting. The result is to create a world class customer service organization that will increase the bottom line. |
| BUSINESS PROCESS IMPROVEMENT / RE-DESIGN & OPERATIONS COST MANAGEMENT |
Companies invariable devote significant effort to increasing revenue, but sometimes under-emphasize the fact that one dollar of expense savings is an additional dollar added to the bottom line. With mounting shareholder pressure on management to increase returns, firms are paying more attention to reducing costs and streamlining operations. CKC has extensive experience managing down the costs of client businesses. For your organization we will identify areas of saving in targeted businesses that have not been previously indentified or have been under explored by previous efforts. By leveraging the experiences of past solutions, we will significantly reduce even the leanest cost structure. These efforts can be stand-alone operations enhancements or can be performed in concert with larger business process redesign and management process improvement initiatives.
The requirements of client companies for process redesign vary immensely. Many efforts dubbed as re-engineering are in reality cost containment or reorganization projects. As internal definitions of re-engineering differ, CKC will identify the appropriate tasks and level of change required, before mobilizing resources. Within the area of change identification and management, we will lead you r organization through the discussion and study stages, develop the implementation plan and manage the change through the generation of valuable results. In situations where a “clean white board” approach would result in significant and lasting value to an organization, CKC will train and lead a group of the organization’s employees through the process of redesigning all or part of that entity. Utilizing process modeling in varying level of complexity, and with or without automated tools, we will consistently produce results, beyond expectations. |
| TECHNOLOGY ASSESMENT, SYSTEM SELECTION, AND IMPLEMENTATION |
Technology will propel a business ahead of its competitors or tie its hands and leave it in the dust. Achieving goals in cost containment, productivity enhancement, or process streamlining, requires that significant consideration be given to technology issues. Conversely, the procurement and implementation of a new system must occur in concert with a thorough understanding of business requirements.
Though technology is an integral part of most business processes within an enterprise, at CKC we always look to implement the appropriate and most efficient solution. This means that sometimes the simple (more manual) process is best-and not just technology for technology sake. CKC’s technically-based understanding of systems, in addition to our diverse experience in industry and business processes, allows us to view business needs in a manner that will leverage existing company assets. This knowledge based is applied to assess needs and recommend realistic, useable solutions that consider industry trends and the current state of technology.
The process of selecting a new computer system for an organization, even a Fortune 100 company, need not require six to nine months or sometimes even a year. CKC has successfully brought large groups of stakeholders to consensus regarding new technologies, often in short periods of time. While any work involving the streamlining of processes that is performed prior to the system selection might ease the choice and will simplify the organization, all aspects of operations do not have to be finalized in order to move on. We are adept in moving an organization through large changes quickly. While our process is an aggressive and demanding one, it produces greater results quicker than more conservative methods.
The size and variety of systems available is tremendous, as is the range of effort required to implement them. After the system has been selected, it is imperative that the momentum and buy-in achieved to date continue through the successful implementation. A large scale ERP (Enterprise Resource Planning) or APS (Advanced Planning and Scheduling) system requires complex project management, deep process knowledge, systems modification capabilities and cheerleading. CKC structures implementations to ensure these are all appropriately applied. Smaller system installations are often guided by very different parameters and objectives. These projects might be driven by a need to limit software modifications an ongoing requirement for minimal daily maintenance an oversight. Again, CKC works with the client to achieve a manageable system and operating environment. |
| FINANCIAL OPERATIONS AND ADVISORY SERVICES |
Success of corporate acquisitions or offerings, whether through merger, venture capital, or otherwise, depends increasingly on the successful assessment of the target firm’s operations and technology. This applies to both the current state of the organization and its long-term outlook. Are the target’s capital investments appropriate and sufficient to fulfill its goals? Is the operation lean and efficient or is it under-performing and fat? CKC accurately assesses complex operations and advises corporate acquirers or financiers of the current operating and technological conditions of the target. When considering a merger there are very specific technology questions to answer. Are these compatible systems? What will it take to integrate them? Can data be transferred easily? From deep knowledge and experience, we provide assessments that will help define that value of the deal.
In addition, these assessments also describe the magnitude of savings that can be realized both short-and long-term by undertaking various process redesign efforts, as well as outlining the steps necessary to achieve these savings. CKC provides and unbiased review of supply chain and manufacturing capabilities. We separate our analyses into two categories: supply chain operations (including manufacturing), and systems environment. In many instances there is an overlap between these areas. CKC will review one or both for our clients. For the supply chain and manufacturing categories, some of the items CKC will assess include:
- The organization’s size and functions at the departmental level.
- Individual operating metrics, such as days of inventory, on-time deliveries, downtime for repairs. Contact us for our list of Measures of Effectiveness.
- Technology including systems, software applications, and specialized products such as radio frequency scanners.
- Level of capitalizing on the Internet.
- Current use of, and potential for outsourcing.
- Ease of communicating internally, with vendors and with customers.
- Product mix, as it relates to complimentary and supplementary items, and to competitor offerings.
As part of our review of the target’s systems we will analyze:
- Hardware solutions in place and the future path available.
- Software: systems, applications and add-ons.
- Compatibility among departmental and enterprise level systems.
- Underlying database structure and integration.
Depending on the deal structure, some or all of the above parameters may be reviewed; or additional analyses may be performed. Two situations that may dictate the success of a deal are a short time frame and a lack of data. When a hostile acquisition or even a friendly one is under consideration, many of a target’s metrics may be unavailable. CKC thoroughly understands benchmarks and best practices for supply chain operations and will provide less specific, though no less accurate assessments, in these instances. Often, acquisitions must be completed within a very short time frame, and the acquisition team is stretched thin. In these cases lost days can mean a lost deal. CKC can respond within hours rather than days or weeks, to assess the various qualities of the target operation, to determine how much more efficient an operation or set of processes can be, and to identify the steps required to liberate the value that is locked within inefficient systems. Assessment projects are tailored to each deal, and if desired, time is only spent on areas, which are determined to affect the value or attractiveness of the transaction. |
| INTERNET BASED SUPPLY CHAIN DEVELOPMENT |
Internet business is not e-commerce. The internet is often seen as simple another channel for purchasing goods. Though e-commerce offers opportunities well beyond the simple on-line purchase (e.g., a full-country manufacturer/dealer network search for a car with specific options), it is a small portion of the potential for exploiting the internet to enhance supply chain management. The internet in the form of intranets and extranets is a tremendous productivity enhancement and cost reduction tool. While an all encompassing, fully connected network of all relevant data from suppliers, your company, sub-contractors and sales channels would theoretically provide a seamless and light speed optimization of the supply chain; it is also not feasible.
At CKC we identify your opportunities for reducing cycle time, increasing accuracy, lowering costs and adding customers. We then formulate a solution for each opportunity. Along with your staff, we rank the opportunity/solution pairs according to ease of implementation, cost, and expected results; and then create a phased implementation plan, separated into reasonable projects.
CKC segments the Internet supply chain into several distinct solution areas.
- MRO supply purchasing and supplier management
- Raw material acquisition and supplier management
- Distribution network management
- Planning and scheduling (from purchasing through finished product delivery)
- Direct e-commerce
- Sales channel management
As part of all our solution areas, we will help you indentify critical data that should be posted to the company intranet, along with the frequency of update. CKC will define, develop and implement the electronic links throughout your supply chain and to your associated internal processes as well as those outside you organization.
Within a specific area we may:
- Work with your suppliers and channel partners to increase the frequency, accuracy and ease of information exchanges.
- Identify a metamarket or other source for purchasing, sales, disposal of inventory or equipment, and related transactions.
- Develop and implement a tracking method for purchasing, production, or order fulfillment cycle.
- Define and implement an efficient e-commerce site.
More than just implementing these solutions, CKC will insure that your staff understands how to use the information and applies it correctly. Our goal is to enable your organization to implement continuous improvement, without continuous consulting. |