A company’s Supply Chain activities are vital to its operation. Working with trusted, proven vendors enables a company to run its day to day reliably. Knowing that a company can make sound decisions based around its Supply Chain enables it to plan for the future. Conversely, a bad partnership can disrupt the Supply Chain and ultimately impact the end customer negatively. Strategy3 prides itself in further strengthening the Supply Chain for many organizations through cost reduction, lead time reduction, quality improvement, and reliability.
Statements of Work
Strategy3 worked with a marine product client that was having reliability issues with its Supply Chain. Strategy3 led and conducted joint meetings with the client and its vendors. By exposing the pitfalls of the current delivery from the vendors, Strategy3 was able to surface the problems within the Supply Chain and renegotiate terms that better protected the client. With these newly renegotiated terms, the client was able to hold the vendors more accountable. The relationships between the client and vendors became more transparent which also enabled better communication and strengthened reliability.
A craft food manufacturer had been over-paying for its SKU mix and had also allowed the SKU mix to spiral out of control in quantity over the years. Strategy3 was hired to re-vamp the entire Supply Chain, inclusive of raw materials and packaging requirements. Through SKU rationalization, Strategy3 determined that a severe SKU reduction was needed, primarily in the corrugated packaging category. Through communicating with the vendors, Strategy3 created an RFQ (Request for Quote) program which forced each of the vendors to bid on future business, thus reducing overall spend with these vendors. For the raw materials, Strategy3 was able to convert many of the materials with small shelf life and highly perishable to IQF (Initial Quantity Frozen) and further drove down costs, while maintaining both internal recipe and customer specifications and improving shelf life. Some vendors cut rebates in the form of a check to keep and earn future business. Strategy3 strengthened the Supply Chain by driving down costs and purchasing complexity.