Matson

Supply Chain Consulting

Matson Logistics Supply Chain provides critical business expertise in helping you identify and achieve real and measurable improvements. Our value measurement methodology explores your supply chain, seeking opportunities in:

  • Improved Cycle Times: Reduction in days of inventory in transit translates into lower inventory carrying costs.
  • Recovered Sales: Better early visibility and improved supplier management translates into fewer stock-outs.
  • Improved Operational Efficiencies: Elimination of manual data input and management by exception.
  • Reduced Supplier Costs: The combination of ML Supply Chain technology and operations staff at origin provides the power to more tightly manage supplier performance.
  • Reduced Transportation Spend: Seek to reduce expedited shipments caused by sub-optimal supply chain performance.
  • Reduced Fees and Fines: Reduce costs associated with delays and non-compliance.
  • Internal IT cost savings: Reduce people, software and messaging costs associated with developing and managing internally.

The ML Supply Chain value measurement methodology establishes current baseline supply chain performance levels and sets target performance goals that you believe are achievable. We then leverage core finance principles such as total cost of ownership (TCO), Net Present Value (NPV), and Weighted Average Cost of Capital (WACC) to build a business case.

The result is a real and credible vision for your supply chain with a bottom line impact.

Three Best Practices

ML Supply Chain utilizes three best practices that help to deliver real and credible value:

A) Developing the value proposition

ML Supply Chain’s value measurement methodology guides you through a five-step process that is designed to create a realistic, achievable and credible return on your investment:

  • Gather business metrics through a standard qualification sheet
  • Conduct interactive sessions with key customer personnel
  • Complete walkthrough of end-to-end supply chain steps and timing
  • Build and refine the business case using ML Supply Chain tools
  • Present findings, build consensus, and achieve executive sign-off.

The outcome of this methodology is a fact-based summary of baseline supply chain performance and measurable improvement goals, against which actual performance can be measured. This clarity and transparency helps to ensure broad organizational support within customer organizations.

B) Ensuring multi-level account management

ML Supply Chain will assign an experienced account manager who will own the account both at origin and at destination. The responsibilities of this account manager are to:

  • Manage all day-to-day operational issues and answer all questions for customers
  • Manage operational exceptions and follow up with parties through to resolution
  • Act as central point of contact for your organization
  • Manage your Standard Operating Procedure (SOP) documents, both for overall operations and for specific IT requirements, tailored to your specific requirements.

In addition, ML Supply Chain conducts periodic management calls with you to ensure that operations are being implemented per SOP commitments. Finally, ML Supply Chain executives meet with you periodically to review overall performance against plan, and to discuss future strategic goals.
The ML Supply Chain management team, at all levels, is committed to its customer’s success.

C) Confirming that value has been delivered

ML Supply Chain works closely with you in monitoring that the actual supply chain performance against the agreed upon goals through the use of a broad suite of analytical tools. These tools combined with ML Supply Chain expertise, ensure that your financial goals become a reality. Specifically, this is achieved by:

  • Incorporating key performance indicators (KPI’s) into your SOP
  • Measuring these KPI’s via ML Supply Chain’s IT platform
  • Embedding KPI results against plans into proprietary dashboard tools and reports
  • Reviewing KPI’s periodic management reviews
  • Ensuring that ”cycles of continuous improvement” are incorporated to keep raising the performance bar
  • Adjusting your KPI’s based on agreed upon changes in objectives and priorities.

Your supply chain goals will be measured and monitored. This in turn leads to better operational and financial results.