With the recent volcano eruption in Iceland, major manufacturers with global suppliers have had to halt operations as flights were grounded throughout Europe. Earlier this year, an earthquake in Chile ground supply chains in the area, halting major food source supplies.

Can disaster planning really help prevent these supply chain disruptions? Are the risks associated with lean inventories worth the cost when operations are halted until supplies are re-stocked? Natural disasters like this, and even the current BP oil leak, can prompt manufacturers to look more closely at their master operating plans.

Read More: http://www.manufacturing.net/Article-Handling-Supply-Chain-Disruptions-052110.aspx?menuid=242

If your business has been considering conducting a supply chain audit, you’re already on the way to reducing operational costs.  In fact, companies that do not see the need for an audit are often those most in need of a thorough analysis.  So what are the benefits?:

• Achieving significant reductions in overall costs and inventory levels.
• Increased forecasting accuracy.
• Reduced order fulfillment time.

So, how do you know if your business can benefit from a supply chain audit?  There are many factors that contribute to the need, including:

• If you have long term vendor relationships, it may be time to review your contract terms and rates to ensure they are in line with fair market value. 
• If your current suppliers work on a variety of different rates and contract terms, your business should see substantial benefits from a supply chain audit. 
• If you are uncertain as to why you are using your current vendors, or if you do not have up-to-date visibility into their strengths and weakness, an audit can help you to gain a better understanding of these vital relationships. 
• A supply chain audit will benefit your business if you feel your vendors are not executing at their stated or true potential, or if you feel you are not getting the best value for your investment.

When you partner with NPI for a supply chain audit, we conduct a complete analysis of your vendor relationships, contracts and rates.  With our assistance, your business will see cost reductions and improvements in shipping processes.  With a goal of maximum supply chain efficiency, we work with your team to achieve lasting and measurable results.

If your business is ready to embark on a supply chain audit, contact NPI today.