Supply Chain Solutions
In many cases today the supply chain is not well linked nor is there an overall approach to an optimal mix model that controls cost of inventory, transportation, and storage as well as meeting customer demand. This is where we come in with total supply chain solutions. We document the entire process and make the links stronger in the supply chain for the organization. How many CEOs today can tell you how they meet customer demand in terms of these costs?
GTMS uses a three phased approach to achieving world class supply chain performance. We help companies first operate at the lowest transportation costs, then the lowest inventory costs, and finally the lowest storage costs. We sign a contract that says if we don’t produce savings you owe us nothing. The only way we earn anything is by sharing in your savings. We also offer contracts based on fixed project fees or monthly fixed charges for consulting.
Supply Chain Cost Reductions come in phases
Phase 1 Transportation Cost Control
Getting the supply chain costs under control is getting the essential data for transportation costs organized and having the ability to harness the power of information. This information comes from transportation contracts and invoices and is organized and controlled by using the best technology available for modeling contracts and auditing performance and cost.
Step One Phase I
- GTMS has proven state of the art modeling software for use in analyzing your freight contracts for optimal efficiency for your business. The model uses your past invoicing data to set the parameters for your specific needs. Once the specific need is established we can analyze the contracts to insure your active contracts are giving you the most cost effective methods of moving your products into and out of your facilities.
Step Two Phase I
- GTMS has proven state of the art auditing software to insure carriers are meeting the service level parameters of the contracts. The data in this phase is critical to all the by products that allow the supply chain to be managed. Not only do we use this data for auditing but we monitor changes in your transportation mix in order to make changes in future transportation contracts. The extra “WOW” in all this is that customer service can use this data to manage customer deliveries, procurement can use this data to see how vendors are performing, marketing can use this data to see where products are being distributed by Global location, operations can use this data to predict scheduling events based on history of deliveries, and the power of the data explodes in the ability to enhance performance.
Phase II Inventory Cost Control
Phase II of getting the supply chain costs under control is getting the essential data for inventory organized and having the ability to understand what the cost of inventory is and opportunities that may exist for savings through increasing inventory turns. This information comes from balance sheet data for inventory items and cost of sales from your income statement.
Step One Phase II
- GTMS analyzes your inventory data for optimal efficiency for your business. The model uses your past history for component and finished goods inventory data to analyze the items that have the opportunity for cost reduction while maintaining production and customer performance.
Step Two Phase II
- GTMS has modeling processes that allows the use of optimizing cost of material versus cost of transportation. This is done by varying the vendor location to reduce transportation costs and seeing if the offset of cost of materials produces a lower overall cost or vice versa. The inbound invoicing data contains the highly used parts and there origination weight and destinations. By changing either origination or destination we can model the new transportation costs and also model the new cost of materials should the cost of material change.
This phase is done by doing a thorough chain evaluation.
Phase III Storage/ Handling Cost Control
Phase III of getting the supply chain costs under control begins when you start to control your inventory costs from Phase II. Once we have the data for how much inventory we need and how often it’s going to be used we start to optimize the handling labor and storage space costs. This information comes from the data used to optimize inventory costs. Remember, this started with the transportation data.
Step One Phase III
- GTMS has modeling processes for use in analyzing your product inventories and movement and allows for the best location internally for your product so the least amount of labor is used to store and pick the product either to the manufacturing process or shipping process. The processes use your past inbound invoicing data to analyze when and how much of the items are arriving and inventory data to better plan how to arrange your warehouse so items travel less distance overall and are more efficiently stored . This phase allows you to increase your overall capacity using the same resources
Step Two Phase III
- GTMS has modeling processes that allows the use of optimizing the cost of the shipping process. This is done using outbound transportation data to insure when product is stored for shipment it is done efficiently based on when it will ship. The data is also used to plan the set up of the shipping scheduling process. We use the data to show us what sequence goods are shipped versus the sequence the orders are pulled. This optimizes the costs, service and quality of the distribution area.
