Supply Chain Governance
Do you know your stock turnover ratio? Are you confident that your procurement and inventory management practices are saving you money?
In today’s environment, supply chain management is critical. Never before has meeting customer timelines been so critical for sustainability. Inadequate oversight of inventory turnover and days inventory can lead to inefficient materials procurement, stock obsolescence, significant working capital sitting in the warehouse, uncompetitive cost of goods and poor profitability.
Strong controls are essential over customer demand forecasting, manufacturing and the quality of finished goods. Efficient and effective procurement is another critical element that can influence product quality and profitability. Unmanaged supply chain risks can lead to fraud and long term brand destruction.
JNW has assisted many organisations assess the effectiveness of their procurement and inventory management frameworks. Based on our many audits of procurement functions, we have developed a better practice Dynamic Procurement Framework model.
The management of supply chain threats and fraud is critical to good governance, profitability and customer retention.
Significant cost savings and value can be achieved through efficient procurement. Creating a procurement intelligence hub, establishing preferred supplier panels, streamlining procurement requirements and automating approvals can pivot your purchasing practices.
Our team would welcome the opportunity to help you extract value and reduce costs.
Specific Supply Chain Governance services include:
Supply Chain Effectiveness Audits HealthChecker
For more details on JNW’s supply chain tips, please click on the “learn more” button and send us your contact details
Examples of who we work with and our broad procurement and supply chain processes experiences
Ridley Corporation Ltd (ASX Listed agricultural company)
- For raw materials procurement, assessed processes such as supplier quality approval, sales and operational planning, ordering, contracts approval, value at risk reporting, mark to market pricing, slow moving items reporting, goods acceptance and receipting, hedge transactions and systems accounting
- Performed an inventory management assessment including benchmarking stock turnover at different sites, risks to working capital from sales demand forecasts, finished goods warehousing and stock management practices
- Conducted a benchmarking review of finished goods quality assurance, testing and product release controls. Testing considered quality framework and standards compliance (HACCP), product testing regime, out of specification product approval and site quality reporting processes
- Benchmarked the procurement processes, including analysis of the procurement environment, culture, policies and procedures, governance and spend patterns
- Developed the Procurement & Contract Management Procedures manual which included a procurement decision tree flowcharts for all procurement methods and thresholds
- Provided advice on the establishment of a centralised Procurement Governance Hub, including consideration for panels, embedding risk management and use of standardised purchased orders and contracts
Manningham City Council
- Reviewed the procurement framework, developed a Procurement Delivery Model Improvement Roadmap and assisted with the implementation of the procurement enhancement program
WestWaters Hotel & Entertainment Complex
- Conducted a purchases rebate audit to determine if key supplier incentive payments, including upfront and volume rebates, business development allowances and growth incentive allowances, were being appropriately recorded and banked
- Assessed the procurement process and provided suggestions to evolve stock ordering controls, use of purchase orders, receipting of goods, invoice approval and use of corporate credit cards