IITA 5-Year Supply Chain

Importance of defining a direction

Question – What benefits are required?

…Set out the IITA supply chain mission

• The supply chain should deliver excellent customer service to all program

activities, it should be responsive to needs, flexible, and this should be seen in

a high level of satisfaction from the end customer

• The supply chain should deliver best value at all times, it should aim to reduce

costs and eliminate waste of all types, including time

• The IITA supply chain should aim to follow best practise in international

supply chain management by bench marking the most effective of commercial

organisations

• Or more basic. We want simple, robust procedures which allow attainable

levels of visibility and control

Supply Chain in Context

• Logistics departments work to support the

entire organisation – the end needs of the

customers must be considered in the

strategy.

Where are we now ?

Strengths and

Weaknesses

• Need to identify where the organisation is

strong already and where improvements are

needed

Targets and KPI’s

Main Areas

• Procurement

• Inventory Control and Warehousing

• Transportation & Supply Networks

• Longer Term Supply Chain Objectives

Procurement

• Likely to be the biggest variable cost in the

organisation

• Need to analyse the spend across the

different product categories

Procurement Process

• Training to control spend

• Training in product categories to understand

specifications

• Standardisation across the organisation –

centralised procurement?

Inventory Control and

Warehousing

• Inventory control forms the basis of many

other aspects of supply chain

• For example demand forecasting and

procurement planning

• Must enforce and inventory control policy

Transportation and

Supply Networks

Appropriate size and configuration of

fleet to suit the organisation

Fleet cost control (fuel and parts)

Right balance of Sea, Air and Land

transportation (cost vs. speed)

Longer Term Exercises

• Physical Supply Network

• Value Stream Mapping

• Review of agents

• IT strategy