As
market pressures relentlessly force down prices, the search
for significant cost reduction has to go beyond the immediate
manufacturing area. The cost of day-to-day transactions between
companies caused by poor communications, duplication of activities
and adversarial “blame culture” represents a
rich seam of opportunity for improved efficiency.
Research
commissioned by MICE from Cardiff Business School’s
Lean Enterprise Research Centres revealed that whilst most
companies recognised the opportunity for supply chain savings,
none had developed a strategy that enabled the changes
in working practises to take place.
One of the key requirements of supply chain improvements
is the commitment and involvement of the directors and
senior managers. This ensures that the new practises and
values developed by the Project Action Team are consistent
with company strategy and performance measurement.