Organisations are cooperating increasingly with suppliers and purchasers in order to provide optimal service as fast as possible to their end customers. For production purposes, they need to purchase products. The next step is to distribute these products to their customers at optimal efficiency. This requires coordination and integration of activities across several partners, who together form a supply chain.
How do we maintain a technical advantage over our competitors? Where can we still save costs in our business processes? How do we increase our service level for our customers? How can we greatly reduce risks? Many organisations are struggling with these questions and seek an optimal balance between cost reduction and customer focus, with minimum risks. In recent years, organisations have come to realise that these issues cannot be resolved internally. It is apparent that suppliers and other chain partners have an increasing influence on the performance of your organisation. There is a lot less awareness of managing and controlling your relationship with a supplier. How do you organise chain cooperation in practice, how do you shape it and how can your organisation get maximum returns from its cooperation with suppliers and partners in the supply chain?
Chain management has been on the rise this century. Organisations realise that managing internal and external competencies is an increasingly important factor for success. In recent years, contracting organisations have become increasingly focused on managing cooperation and gaining control over chain partners. Several market developments have put chain management high on the clients’ agenda. Over the last couple of years, it has become more difficult to predict customer demand and to segment customers. Customers ask for more, which impacts a great part of the chain. This has a huge influence on the entire chain, shifting supply driven management to demand driven management. In addition, increased competition demands standing out and offering a high level of performance. Globalisation has resulted in a significant increase in the number of chain parties.
In order to address these developments, organisations turn to their ‘core competencies’ in order to bundle expertise and channel investments to distinguish themselves from their competitors. They achieve this through, for instance, faster and more efficient order processing, less administration, more integration and implementing smarter ICT products/software, innovative product development, lower costs and better service. Consequently, organisations outsource part of the activities.
Chain management, supply chain management, contract management, supply management, supply relationship management, professional commissioning, strategic outsourcing, sourcing and more. Many terms and concepts are used with regard to controlling and managing the chain. Everyone looks at it from their own point of view or profession. Yellowstar Solutions uses the term ‘chain management’ and defines it as follows:
Arranging, organising and optimising cooperation within and between organisations in order to create added value for the end customer while keeping costs under control. Making processes manageable, predictable and transparent makes this possible. When this is realised, mutual trust in the chain increases! When there is trust between organisations/people in the chain, information can easily (automatically) be processed in each other’s systems. Agile, smart, effective and efficient. Due to its knowledge and origin, Yellow Star focuses on logistical processes of and between businesses. It is specialised in (intermodal) transport, storage, distribution and order management in companies and in the chain. But there is more in the portfolio.
Yellowstar software -in and for the chain- enables organisations in the chain to effectively and efficiently design, implement and manage these supply chain processes. Within the organisation, but also in cooperation with other organisations. This is essential to almost all organisations, whether you work for a commercial organisation or in a different sector.
Yellowstar Solutions focuses on the following verticals and branches with its innovative software:
Yellowstar’s ‘chain management software’ is focused on the most important processes in and between chain partners in a supply chain: operations, purchasing, order management, distribution, coordination/integration and logistics for transport and storage. This makes Yellowstar the ideal partner, specialist and advisor for all different supply chain core processes.
The supply chain manager is well aware of the effect of an integral performance improvement of the chain. Innovative software creates insight into what is happening where, what can be stored and moved, what alternative possibilities there are and what the quantitative and qualitative business consequences are. Manageability, predictability and transparency, that is what businesses like to see before all else. This positively impacts the level of trust in the chain, resulting in rapid processing and completion.
The entire mix of performance indicators that could be relevant for the customer and/or chain manager are taken into account. Examples: response times, cycle times, transport times, order processing, added chain value, costs incurred, non-conformities, etc. In our future blogs, we hope to provide you with more information and details regarding products and services.