Supply chain optimization program

After a successful pilot project held in five states, the National Institute of Standards and Technology’s Hollings Manufacturing Extension Partnership (NIST-MEP) has launched a supply chain optimization program to help U.S. manufacturers become more competitive.

According to John Remsey, a lead subject matter expert for the effort, manufacturers of any size can benefit from the program, which seeks to increase competitive advantage through stronger, more collaborative supply chains.

“Our goal is to help manufacturers align their corporate strategy to their supply chain strategy,” Remsey says. “When disruptions occur due to natural or systemic factors, manufacturers with a supply chain strategy are able to respond more quickly.”

The program establishes a coaching and mentoring partnership between MEP’s subject matter experts and participating manufacturers to address barriers to effective supply chains. NIST-MEP surveyed manufacturers and found that companies suffer from a lack of collaboration and visibility in their supply chains and lack a synchronized plan for those elements. The survey also showed that many do not understand the true total cost of ownership – the costs for every activity along the supply stream.

MEP centers help improve supply chain performance by quantifying the needs of the supply chain and focusing on the points in the process that are impeding throughput. Total cost of ownership is one element on which the centers provide guidance, along with executive and partner engagement, and risk management.

In one recent partnership, the South Carolina MEP helped a client avoid $3 million in capital expenditure, realize $2 million in increased annual sales, save $200,000 a year, and retain eight full-time jobs – all while achieving a 10% increase in capacity and a 10% reduction in inventory.

Prior to working with MEP, the company had focused on reducing inventory and increasing production speed. The MEP center’s supply chain optimization process revealed that the key to improving the company’s profitability was better communications with its sister and parent companies and the integration of new planning and scheduling software. This not only boosted performance, but also provided deep insight into the entire supply chain and benefited the entire company.

An effective supply chain strategy must support suppliers across the country, deliver consistent services and results, and be capable of customizing services to meet regiona, company, or location-specific needs.

The NIST-MEP system has as its mission the goal of improving the competitiveness of U.S.-based supply chains, offering a network of assistance providers throughout the country; consistent delivery approaches to implementing lean, quality, and other performance improvement programs for manufacturers; and the flexibility to customize services and products to meet varying needs.

NIST-MEP works with partners at the state and federal levels on programs that put manufacturers in position to develop new customers, expand into new markets and create new products.

NIST-MEP
www.nist.gov

With the success and expansion of the program, manufacturers are now able to work with their local MEP center to tailor a plan to their own needs. To learn more, go to www.mepsupplychain.org for a listing of program offerings.