The Value of an Optimum Supply Chain

Proper management of a Supply Chain can achieve a lot of savings that can be noticed in a short time period. To achieve these savings within the first year of managing the Supply Chain efficiently, the following steps must be made:

Formulate a Supply Chain strategy.

Define the actual current customer service levels.

Understand the customers’ service requirements.

Design the required network(s).

Re-Design layout of the warehouses.

Design & implement Supply Chain Key Performance Indicators.

Optimize the inventory.

Improve fleet management.

Establish the actual Supply Chain costs and how these costs are created.

Develop & implement plans to improve customer service.

Develop Supply Chain benchmarks and targets.

Develop & implement plans to reduce Supply Chain costs.

Identify areas within the Supply Chain requires improvement.

Quantify the financial impact of successful Supply Chain optimization project

The result of the above initiatives within the first year will be: 

Better forecasts, accounting for promotions and market changes.

Enables the coordination of manufacturing, distribution systems and strategies.

Enables retailers to better serve their customers by offering tools for locating desired items.

Enables retailers to react and adapt to supply problems more rapidly.

Increase customer service levels.

Reduces lead times.

Reduces transportation cost.

Reduces multiple handling of goods.

Reduces inventory holding period.

ARABIAN HALA COMPANY Ltd.
Head Office:
Abdullah Bin Hoazafa Al-Sahami St. Diplomatic Quarter
P.O.Box 6164 Riyadh 11442 - KSA
Tel: +966.1.4884887 - Fax: +966.1.4884389