Supporting the Planning and Development of Supply Chain Management Reforms
Formulating Overall Designs for Supply Chains to Boost Corporate Value
For companies doing business globally and aiming to maximize their profits, drafting a material resources volume plan to achieve optimal supply and production levels and establishing a supply chain network to realize that plan are critical.
NRI supports companies in creating methodology-based plans that, instead of focusing only on particular fields, address more broadly how overall corporate functions lead to a stronger global supply chain.
Our approach involves diagnosing the state of a company’s current supply chain, considering its products’ features together with the features of its desired growth markets, logistical features, and all other relevant details, and then assembling a comprehensive reform plan encompassing all aspects from new product development processes to after-sales services. Following this approach is the shortest path to your success.
Supporting Supply Chain Design
A key here is how to go about designing a network so that the supply chain will boost corporate value.
NRI uses LLamasoft as a digital solution to visualize a customer’s supply chain and then derive the optimal solution for its existing model, based on its current supply chain requirements and performance results data. We also help with designing ideal versions of supply chain networks that can elicit maximum value, by simulating multiple scenarios such as alternate placements for distribution sites in a company’s network or changes in its sites’ capabilities.
Supporting PLM Reforms
PLM Process Reforms That Directly Aid in Boosting Added Value for Global Business
In the manufacturing industry, the PLM process is a vital one, and it can be a powerful factor in determining the functional requirements for the various related processes in a company’s supply chain based on its products.
Front loading the product development process and establishing an optimal development process based on product value have become unavoidable issues for companies that are looking to do business in various markets including developed and emerging nations.
NRI recommends a “To-Be” business process that begins with analyzing product development processes and finds ways of boosting business value, and we will support companies in making reforms under whatever digital technology and system-related measures are necessary.
Supporting the Formation of S&OP Processes
Reforming the Planning and Implementation Processes for Supply-and-Demand Plans That Adapt to Market Fluctuations
In the past, many kinds of companies have undertaken “planning and inventory visualization” projects as part of their global PSI efforts in order to upgrade their planning processes. However, there are still few cases of companies that have built full-fledged processes covering everything from forecasting demand to formulating supply-and-demand plans and optimizing their inventories.
And even companies that have managed to construct such processes are at serious risk of losing their strengths, if they fail to reform these very processes in response to changing markets and business structures.
NRI supports companies facing this situation by equipping them with the ability to achieve reforms based on their own methodologies. Upon analyzing their current PSI situation, we help them create the optimal planning and performance monitoring features, develop functions for monitoring production-related and logistical changes occurring in the market as well as internally, and then fashion an S&OP process that fully accounts for their core competencies. During this reform process, we provide support to enable them to autonomously make continuous improvements to their process.
Supporting Procurement Reforms
Process Reforms for Equipping Companies with Procurement Capabilities That Directly Enhance Business Competitiveness
Procurement processes exist at companies in every industry and every business type.
Whenever market volatility or economic fluctuations appear, companies look to modify their procurement processes by cutting their procurement costs in order to quickly ensure their competitiveness. This is when we see an obvious gap between companies that continually stay apprised of which procured items and suppliers are advantageous for them and whether alternatives are available, and companies that do not.
NRI provides support by applying proven best practices in the procurement field to enhance a company’s competitive power through reforms.
For directly procured materials, we create new processes for generating performance indicators and running simulations that are coordinated with PLM processes, while for indirectly procured materials, we help carry out organizational and process-related reforms that not only reduce costs for a “quick win”, but also enable such reductions to continue indefinitely.
Direct Material Procurement Process Reforms for Boosting Both Cost Competitiveness and Added Product Value
In the manufacturing industry, 60% to 80% of costs are procurement costs for directly procured materials. Reforming the procurement process for such materials, therefore directly ties into improving a company’s cost competitiveness.
In order to reform such procurement processes, it’s essential for companies to coordinate them with their PLM process, to assess their suppliers’ qualities, and to be knowledgeable about their suppliers’ materials. The company’s cost reduction will often be inadequate when a company’s R&D unit and procurement unit do not have the same information on new products or suppliers, and when the coordination among these units is lacking
At NRI, we support companies in implementing methodology-based data analysis and process reforms to link their new product information and procurement information within their design and development process.
By collaborating from the initial stage of new product development with leading suppliers and applying the optimal parts and materials, companies will be able to achieve the kind of new product development that would never have been possible with their conventional product development process.
Indirect Material Procurement Process Reforms for Achieving Sustainable Low-Cost Operations
For every business function, companies procure the raw materials and services they require. Managing all of these in an integrated, cross-functional manner involves considerable challenges. It is also difficult to judge whether such costs can be reduced merely through in-house efforts as these items and services customarily grow more expensive,
With our achievements and benchmark results in this area, NRI helps companies diagnose how extensive their cost cutting can be, and to achieve a “quick win” by curbing costs in a short timeframe.
During this reform process, we also transfer our knowledge of cost-cutting criteria and methods and help companies to build the systems and processes they need to create their own sustainable low-cost operations.
Supporting Logistics Reforms
Visualization and Reform at Distribution Sites Based on a Scientific Methodology
When it comes to distribution sites, the ability to analyze the productivity of individual functions and the logistical circumstances surrounding a company is an essential factor in maximizing its products’ added value.
As companies expand their businesses globally, following a resolute methodology in analyzing and visualizing their own networks and in building a material handling process system for distribution in every country and location will be a crucial element for their future overall supply chain strategy.
Using a scientific methodology, NRI supports reform efforts to help companies visualize their distribution sites, and to map out which among all their logistics-related factors are truly essential, thereby boosting productivity and optimizing inventory.
Making Logistics Digital
Once distribution site conditions are visualized and the right methodology is established, the next step is to ensure that the sites are efficient and offer high added value through the use of digital technology. There are limits to what manual operations or compartmentalized systemization can do to deal with things like labor market shortages, increasing personnel mobility, and more sophisticated demand on logistics. Establishing a methodology for on-site reforms that involves systematic automation, labor-saving operations, and the use of big data is crucial. NRI helps with the digitalization of operations and formation and implementation of measures in line with on-site situations following a scientific methodology, drawing on our past achievements and working with our partners who have their own research and techniques involving the latest digital technologies
- Global SCM consulting for major automobile manufacturers
- Reforming supply and demand adjustment operations for a dairy product manufacturer
- SCM reform consulting for Beer Producer A
- SCM/distribution performance improvement consulting for a major bread producer
- SCM reform consulting for a leading PC peripheral device manufacturer
Please feel free to contact us for management consultation or any other questions about our consultation services.
Representative Department: Consulting Division
- Open innovation
- Policy recommendations
- Energy, environment
- Global operation
- Business model innovation
- Business resturctuting
- HRM strategy
- Cost restructuring
- Business process restructuring
- Supply chain optimization
- Regulatory compliance
- Policy Design
- Koichi Baba
- Satoru Matsumoto