Manufacturing is a complex mix of processes, raw materials, and precise timing. When even a small error occurs, the entire production line can face delays or waste, affecting both time and money. Supply chain consulting is one of the most effective ways to prevent these disruptions and keep your manufacturing operations running smoothly. But how does it work? And how does it really improve manufacturing?
The Hidden Gaps in Manufacturing Processes
Many manufacturers deal with issues like inventory inaccuracies, slow production rates, and disjointed systems that don’t communicate properly. These problems are often symptoms of deeper issues in the supply chain. When we worked with a client who was reporting over $5 million in lost inventory, it was clear that something wasn’t adding up—not just in their books, but in their process.
That’s where supply chain consulting comes in. Our team didn’t just look at the obvious errors; we examined the entire process, identifying key break points where inventory control was failing. From this root cause analysis, we were able to implement long-lasting solutions that addressed the gaps in the system.
How Supply Chain Consulting Enhances Manufacturing Operations
1. Inventory Accuracy
One of the first steps in improving manufacturing operations is ensuring inventory accuracy. A broken inventory process can lead to chaos on the production floor. We often see companies struggle with their cycle counting and physical counts, which are crucial for inventory control. When inventory data doesn’t match the actual stock, it can create significant delays in production.
Through our consulting services, we help businesses track inventory through every stage of the manufacturing process. This allows us to identify where errors occur and fix them. For example, implementing additional scanning processes or increasing location granularity can significantly improve accuracy. Our experience shows that by aligning the inventory with your Warehouse Management System (WMS) or your book of records, you can drastically reduce errors.
2. Resolving Systemic Errors
Sometimes the issue isn’t the physical handling of inventory but rather the systems in place. One of our clients, who was using SAP’s ERP system, was facing synchronization issues between their WMS and SAP’s error log system, IDOC. These errors were creating discrepancies that made it nearly impossible to maintain accurate inventory records.
By analyzing these systemic errors and performing root cause analysis, we were able to not only fix the IDOC errors but also streamline the process, reducing future errors. This illustrates another way supply chain consulting enhances manufacturing operations by addressing the underlying systems, not just the surface problems.
Monitoring and Measuring the Impact
After identifying and fixing the issues in the supply chain, it’s important to monitor improvements. We recommend focusing on two key metrics: inventory accuracy and production output.
3. Improved Cycle Counting
Once the manufacturing process is stabilized, a good cycle counting program can further enhance inventory accuracy. Regular, well-executed cycle counts ensure that your inventory records remain aligned with the physical stock. This also helps identify any new issues early, preventing them from growing into larger problems.
4. Faster Production Output
Inaccurate inventory directly affects production. When workers on the production line can’t find the parts or materials they need due to inventory errors, it slows everything down. By improving inventory control and system synchronization, we’ve seen significant improvements in production speed. Streamlined inventory systems allow your frontline workers to access what they need faster, which directly impacts production output.
Real-World Example: Tackling $5 Million in Inventory Loss
In one case, we worked with a client who was reporting over $5 million in inventory loss. By taking a holistic approach, we examined both the physical and systemic aspects of their supply chain. Our team split responsibilities—one group worked on resolving IDOC errors within their ERP system, while another focused on increasing location granularity on the production floor.
This dual approach allowed us to address the root causes of their losses. The results were dramatic. Not only did we recover the “lost” inventory, but we also implemented changes that made their operations far more efficient moving forward.
In Summary
Supply chain consulting goes beyond just fixing immediate problems—it digs into the core of the manufacturing process to create lasting improvements. From increasing inventory accuracy to resolving systemic errors, consulting helps manufacturers identify and solve problems that may have gone unnoticed for years.
If your manufacturing operations are suffering from inefficiencies, inventory errors, or slow production, now might be the time to seek professional help. Contact us today to find out how our supply chain consulting services can streamline your manufacturing process and improve your bottom line.
