How do you plan and manage inventory and logistics when sourcing from multiple contract manufacturers?

In addition, ensure that a governed Collaborative Planning process is carried out on a periodic basis to communicate variability in demand to CMs at lead time, to share capacity requirements in medium to long term, and to gain and monitor production commitments received from CMs. In case of multi-sourcing engagements, demand allocation to CMs must be managed carefully beyond frozen time fence by ensuring stable signal to all CMs, with the goal to keep business relationship and operations resilient.

Managing inventory and logistics can be a daunting task, especially when sourcing from multiple contracts. To effectively plan and manage this process, it is important to have a well-organized system in place. This includes tracking inventory levels, monitoring delivery schedules, and maintaining good communication with all parties involved. Additionally, utilizing inventory management software and implementing efficient logistics strategies can help streamline the process and ensure timely delivery of goods. Regularly reviewing and adjusting inventory levels and logistics plans can also help optimize the sourcing process and minimize any potential issues.

Sourcing products from multiple contract manufacturers can be a challenging task, especially when it comes to inventory and logistics management. To effectively plan and manage inventory, it is important to have a clear understanding of the production capacity and lead times of each manufacturer. This will allow you to allocate inventory based on demand and avoid stockouts. Additionally, implementing a robust logistics system, such as a centralized tracking and monitoring system, can help streamline the transportation and delivery of products from different manufacturers. Regular communication and coordination with each manufacturer is also crucial to ensure timely and efficient sourcing.

Over the last few years understanding your end customers flexibility to changes in your supply chain needs to deeply be understood. As an example, the Auto industry is very inflexible when it comes to changes in process, raw materials and sub-tier supplier changes.

Indeed, forecasting is the main key factor on this matter. However, to have a good planning, we should have an accurate forecast which meant that procurement engagement in the AOP and S&OP processes must be highly considered.

I subscribe to the therom "One is None-Two is One". I always have a minimum of two CM's to which I try to be as open and transparent as possible. Even including them in my decision of who is the primary and who is the secondary based on price, delivery, quality etc.

Agreed on secondary-sourcing to ensure no disruptions in the manufacturing supply chain. A good framework to vet potential CMs is Plan, Source, Make, Deliver, Return (or more commonly known as the SCOR model first developed by PRTM) Once all areas are explored, discussed, and agreed with the CMs, the best practice is to memorialize everything as part of the MSA (Master Sales Agreement)

Find the best CM but also its advisable to have another CM for backup.. Dont keep all your products with single CM. in long term this strategy will help full for consistent supply.

Some ways to get started : - Contract manufacturers' contract to build agility for time of ups and downs in demand - Collaboration and forecasting for transparency in planning e2e Supply Chain - Inventory management system that automates reordering for majority parts of BOM, excluding some critical ones - CM's performance metrics linked to motivational incentives like bigger pie of business

- Faire évaluer les stocks minimums et le seuil critique de chaque item - Avoir une meilleure planification pour éviter le juste à temps en établissant des contrats avec les sous-traitants - Vérifier les niveaux de stock pour éviter les sous-stockages et les sur-stockages

My experience is to ensure a reliable and robust supply chain is weekly rolling forecast on one hand and to ensure your EMS also does the same towards his suppliers. Ensure your EMS is using state of the art technology to communicate with his suppliers and also he utilizes the most sophisticated tools to update his ERP / planning systems. Just a nice contract gives you a good feeling, but not a resilient Supplychain‼️ #APIinaday helps to provide realtime data within seconds for a part in a handy format. How does your supplier ensure he keeps his ERP updated ❓