JDA Software outlines five success strategies
Supply chain solutions provider JDA Software has offered five strategies to help guide manufacturers to improve their operations and overall business performance to drive profits.
“Applied intelligently and systematically across the enterprise, lean thinking today can have a transformative effect on a manufacturer’s ability to compete, in both good and challenging economic times,” said David Johnston, JDA Software’s senior vice president, supply chain.
JDA’s first strategy is to commit to lean on an enterprise-wide basis; the most effective lean initiatives focus on the extended supply chain network. If this is not implemented, problems or issues that develop in specific functional areas can have unintended consequences that can lead to expense in other areas.
Secondly, companies should understand what drives their supply chain; by a closer examination of the variability of demand, firms should be in a position to respond more profitability to changing trends in their business patterns.
When demand has been understood, the next step is to drive the development of a connect supply chain for distribution to production in an effort to eliminate the significant levels of waste that exist in many supply chains.
Fourthly, the implementation of IT solutions is key, as they allow companies to solve complex optimisation problems as well as providing global visibility along the whole spectrum of the supply chain, together with the ability to respond quickly to the market.
Lastly, JDA Software suggests that the alignment of these initiatives with your corporate business plan and goals is vital. It is essential that financial management is an integral participant in these plans, and should be a key part of the critical decision-making processes.