The Context Group | Consulting | Consultants in Supply Chain strategy, processes and technology

At The Context Group, our goal is to advance the supply chain management practices for our clients, our people and the industry in general. Every year we review important findings and conclusions from recent engagements and develop a plan to conduct client-centered research and analysis for the upcoming year that will lead to implementation of leading or creative supply chain practices. Criteria for selecting research topics are:

The potential impact on supply chain service or cost performance
The potential impact of solving a specific supply chain issue
The likelihood of further analysis leading to near term implementation

The research will be client-centered with industry practitioners being actively involved and based on client data
Compressing Time and Inventory in the Global Supply Chain continues to have a major impact on the industry and our clients.

If you would like further information, please contact Josh Taylor (404) 355-3601

Global Sourcing Cycle Time Reduction

Abstract

The rapid growth of global trade on the supply chain has been truly significant, and is having a major impact on the sourcing strategies and practices of most U.S. companies.

In 2004 The Context Group was engaged to benchmark import purchase order metrics of selected U.S. sewn goods manufacturers to examine cycle time and inventory performance, and found a significant variance among manufacturers on inbound cycle times.

Results showed that companies generally fall within one of two groups: a leading group with cycle times of approximately 50 days, or a lagging group with cycle times of approximately 80 days.

Conclusions from the study suggest that a wide variability exists in global cycle time performance, and that many companies may have opportunities to dramatically reduce cycle time. In addition, findings from the study suggest that many solutions are proven and readily available to accelerate the sourcing process.

As a next step, a more detailed study is proposed to identify specific practices and enablers driving rapid global cycle times. Specific objectives include:

1) benchmark cycle time performance metrics at lower levels of the P.O. process,

2) identify practices and enabling systems associated with various performance levels, and

3) develop conclusions suggesting specific action steps U.S. companies should take for those wishing to improve global cycle times.