Supply Chain Technologies
Cost Reduction
The current economic crisis is the best motivation to reduce supply chain costs!
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Save Now & Later
Finding savings in the complex web of supply chain technologies requires experience and advanced methods. It is well worth the effort. Once identified, supply chain technology cost reduction opportunities:
- Are quick to implement
- Provide fast payback
- Generally require little capital investment
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When supply chain systems are not configured or technologies are not used to their full potential, supply chain costs may become inflated and service levels more difficult and costly to achieve.
Focused on realizing the full value of supply chain technologies, Tompkins' Supply Chain Technologies Cost Reduction solution provides a fast, affordable analysis of your organization's supply chain technologies to uncover cost reduction opportunities -- both in terms of the overall supply chain performance as well as in technologies administrative costs.
Based upon our view of the overall supply chain technology architecture, the assessment provides a strategic review of all technologies linked to supply chain performance with the goal of establishing a clear measure of the current state and future obstacles, while maximizing cost reductions.
What is SCTCR?
We review and analyze your current supply chain technologies to determine:
How can existing functionality be better used to improve operations?
What performance metrics and tools best support the overall corporate objectives at the appropriate management levels?
Are there practical opportunities to decrease costs or increase and improve customer and supplier integration for timeliness and accuracy?
Do the technologies effectively support corporate objectives for inventory and service levels?
Are there opportunities to reduce technology administrative costs and overhead costs?
Our SCTCR service identifies and addresses your cost reduction opportunities. You end up with lower costs and often higher levels of service.
We Deliver
For 35 years, we have served the market with supply chain experts and skilled technology consultants. Our Supply Chain Technologies Cost Reduction (SCTCR) service yields a fast and significant ROI.
Tompkins Associates’ review and analysis process carefully balances strategic infrastructure development with supply chain performance improvements for a time-phased assessment to achieving short-term results, while positioning the organization for long-term excellence. The technology assessment pays close attention to the organization’s technology development standards and framework for internal and external information flows.
Companies must optimize their technology investments to compete in the market, by examining every opportunity to improve operating expenses while sustaining customer service.
We reduce costs without disrupting service. We find the hidden costs often buried in current system configuration and processes. We define key metrics to drive cost reduction. Our SCTCR services can enable your supply chain operations to achieve 5-20% operational savings within as few as three months.
Business Opportunities |
Solutions |
Typical Benefits |
Warehouse Management Systems |
- Assess current configuration to ensure optimal usage
- Determine areas for improved productivity and increased utilization of warehouse space
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- 1-5% improvement in labor efficiency
- 5-20% improvement in realized warehouse capacity
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Transportation Management Systems |
- Analyze opportunities for reduction in freight and administrative costs and improved on-time delivery
- Assess opportunities for consolidation of orders and optimized loads
- Assess current freight and parcel rating and routing practices
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- 5-10% reduction in freight spend without sacrifice to delivery performance
- 5-30% reduction in administrative support requirement
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Reverse Logistics Management |
- Assess the management of return, disposition and RMA/credit process
- Review configuration and processes to minimize unauthorized returns and transportation costs
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- 5-20% reduction in operations and administrative requirement
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Inventory Management |
- Review demand forecasting configuration and alignment with objectives
- Assess application's ability to support inventory management policies and practices
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- 5-15% reduction in inventory without sacrifice to service level objectives
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Application Integration |
- Assess integration between internal systems to ensure optimal data flows
- Assess integration with external trading partner systems
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- Intensive benefits in overall coordination -- internal and external
- Significant administrative savings
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Supply Chain Visibility |
- Assess communications with trading partners and rules-based exception management
- Review integration workflow for linkage of business processes
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- Significant administrative savings
- Streamlining of inbound processes through better planning and increased ASN usage
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Performance Management |
- Review key performance metrics
- Analyze alignment between metrics and bottom line
- Assess visibility of appropriate metrics at all management levels
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- 5-10% improvement to warehouse productivity resulting from tight alignment of measurements with objectives
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Systems Support and Administration |
- Review systems administration practices for low-risk efficiency opportunities -- short-term and long-term
- Review infrastructure technology to determine if there are more attractive options to be explored
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- Actionable plan for resolution of integration bottlenecks and reduced administrative support
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Learn More
Visit the supply chain information technology page for more resources on WMS, TMS, and more.
Solving the Cost Reduction Riddle
For a complete overview on aggressive, intelligent supply chain cost reduction on all of the Buy-Make-Move-Store-Sell-Return elements of the supply chain, read the article "The Riddle of Supply Chain Cost Reduction" by CEO James Tompkins.
There are significant cost improvements that can be accomplished with little to no capital investment and with minimal resources. For detailed information, see what top performing companies are doing in areas such as transportation, inventory and outsourcing.
Bottom Line Impact Now:
Ways to reduce costs in specific sectors.
Five Key Opportunities to Reduce Distribution Costs
Three Key Opportunities to Reduce Transportation Costs
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