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Valacrity, Inc.

Supply Chain

US Manufacturers need new skills and tools for Offshoring

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Supply Chain Planning is becoming ever more critical to the US manufacturing industry.  In the effort to become globally competitive, many, if not most, manufacturers are looking offshore for cheaper labor markets.  Typically, components, sub assemblies, and complete product line are being sent to Mexico, China, India and former Soviet Union countries (FSU). Although in some cases, products have been cheaper to purchase on a per unit basis, few realize the full costs of off-shoring their production.

In addition to higher transportation costs, quality problems (as in the recent toy lead content recalls), the most problematic issue for the manufacturer is the dramatic lengthening of the supply chain.  Planning to meet customer deliver expectations must now be done months in advance.   Twelve to 16 week lead-times are the norm for delivery from Asian countries.  When traditionally manufacturers were rewarded in the marketplace for the ability to respond quickly to changes in customer specifications and volumes, now sourcing offshore production is fixed months in advance .  Forecasting customer demand months in advance, determining warehousing strategies to serve customer needs and vagaries of demand location are not the traditional skills of many manufacturers.

Valacrity personnel have 15- 20 years of consulting international manufacturers specializing in the requirements to serve this difficult market.  Our multi-national experience includes:    

·         Collaborative planning,  forecasting and replenishment (CPFR) implementation

·         Supply Chain Implementation and training

·         Inventory Control and Management

·         Warehousing strategy

·         Warehouse location and design

·         SCM systems implementation and integration

The emphasis of our practice is to implement and train your personnel in the skills needed, not to write reports (that you get at great cost) from the large consulting companies.  We develop targeted personalized procedures and training that produce profitable and lasting change in the companies we serve.