Efficient and flexible supply chains are a source of competitive advantage for today’s global enterprise. Logistics and distribution/supply chain is a significant component in manufacturing operations, both from a strategic and the operational perspective. Almost 10% of the overall costs of goods can be attributed to logistics and distribution in the manufacturing industry. Supply chain strategies have long emphasized the importance of lean manufacturing, off-shoring and small lot deliveries. However, with recent changes in the global economy, rising labor costs in developing countries and volatility in oil and commodity prices, some of these strategies may imperil the firm’s supply chain and its ability to compete successfully.
What We Do
DBTC analyzes, designs and implements flexible supply chains and its seamless integration with manufacturing operations to provide sustainable competitive advantage and tangible returns to its customers.
Capturing customer value from product manufacturing through fulfillment requires focusing on the relationships between product characteristics, delivery channel and sales. Matching products and industries with supply chain strategies provides the operational flexibility needed in today’s environments. Using push, pull and hybrid strategies, DBTC can optimize the firm's supply chains realizing maximum value for its customers.
It has been our observation that 90% of the time spent in manufacturing a product is spent in either in-plant movement or storage. Reducing the in-plant movement and minimizing the storage of work-in-progress will have direct impact in reducing cycle times and hence manufacturing productivity. DBTC designs in-plant strategies that optimize movement and storage within a manufacturing plant. Drawing upon its operational expertise and analytical tools framework, it develops optimal movement of equipment and materials, minimizes work-in-progress and recommends corresponding changes in process operations.
Today’s markets for raw materials for manufacturing are volatile. Swings of more than 100% in commodity prices are the new normal. Inability to accommodate these volatilities in operations can quickly escalate the costs of operations, particularly in some industries where more than 50% of the costs can be attributed to raw materials. DBTC helps its clients in determining the sourcing and inbound-logistics strategies for sustained operations while maintaining its cost competitiveness.
Most of our clients today face significant demand volatility, which results in either lost opportunities or over-stocking leading to obsolescence. At the same-time oil price volatility and escalating transportation costs challenge the costs of distribution. Appropriate design of the outbound supply chain can reduce lost opportunity costs, customer churn, inventory costs and increase customer satisfaction. Through effective inventory positioning, distribution centers design and transportation mix optimization, DBTC helps its clients achieve significant benefits through the outbound supply chain.
As off-shoring and globalization of operations continue to grow, supply chains are geographically more diverse and therefore are exposed to various types of natural and man-made disasters. For example, for lean manufacturers that focus on low inventory levels, one disaster can bring their business to a halt. With the threat of disasters becoming a reality, enterprises need to establish risk mitigation measures that accurately reflect their levels of risk exposure. While building resilient supply chains, customers need to actively manage these risks, which range from hurricanes and epidemics to mundane risks like forecast errors and transportation breakdowns. DBTC designs risk mitigation strategies for supply chains through techniques like capacity redundancy, velocity of sensing and flexible supply chain communities.
Reducing the carbon footprint for supply chain operations is an important priority for national and international businesses. Logistics today contributes to over 5% of today’s greenhouse gas emissions, with transportation responsible for 89% and the rest attributable to warehousing and distribution. DBTC can help design both short and long term strategies for carbon footprint reductions in the supply chains. Supply chain reconfiguration, transport-mode optimization and emerging clean technologies are some of the mechanisms that we use to design green supply chains for our customers.