More than ever, we are convinced that useful technology will play a crucial role in creating a resilient, eco-responsible future.
Editorial by Vincent Bedouin
How will the supply chain change
with the crisis?
28 October 2020
LACROIX
The health crisis: speeding up the transformation of the supply chain
The unprecedented situation we are experiencing has revealed the vulnerability of certain links in the value chain to fluctuations on a never-before-seen scale: imbalances between suppliers and customers, supply disruptions, dependence on other countries, risks linked to mono-sourcing, etc.
“This crisis, however difficult it may be, has made manufacturers aware of weaknesses in their supply chain and given them the opportunity to start or continue working on adapting it“.
Limit the “bullwhip” effect on the supply chain to reduce lead times
These difficult times have served as a springboard, revealing the need to speed up the changes already underway at the Electronics activity of LACROIX :
“The crisis we are going through encourages us to limit the “bullwhip” effect, which means that any disruption (of demand or production) spreads exponentially as we move through the links in the chain. This situation, which is manageable when initial fluctuations are minor, becomes extremely complicated in a context of major disruptions such as that of 2020.
One solution to this flaw is the reduction of lead time, which is the amount of time between a customer’s initial order and delivery.
- Traditional lean manufacturing, a method which is based on eliminating all types of waste (excess production, waiting time, stock, etc.) within production processes, should be prioritised and
- part of the stock of a certain amount of our components should be relocated.
- We must also act on information flows by automating industrial planning (planning of tasks at each stage of the manufacturing process), as well as the trade relationship with our customers and suppliers in order to speed up the process and make it more reliable.”
Towards a balanced supply chain integrated into the company strategy
These changes will make the supply chain more resilient:
“This includes local subcontracting and dual sourcing, partnerships with suppliers and customers, information exchange or CSR and strong management. The aim is to place the supply chain at the heart of the company’s strategy.”
In order to prepare for possible further fluctuations, risks should also be balanced out and redistributed. The fair value chain is therefore a solution: it is a matter of encouraging exchanges and discussions with partners in order to extend customer commitment periods while reducing those given to suppliers.
“LACROIX has a card to play on the subject of balancing the supply chain by indicating market trends to its customers. The Group addresses a wide variety of markets (automotive, aeronautics, medical, industry, etc.), some of which are interconnected. We thus have a rich database that Artificial Intelligence could use to this end.”
A customer-oriented Supply-Chain strategy
Because each customer is unique, we offer you a customised Supply-Chain strategy based on the command of key skills: customer relations, planning, scheduling, supply, flow management and customer service. >>>
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