Supply Chain Management

Supply Chain Management ( SCM ) is the combination of art and science that goes into improving the way a company finds the raw materials it needs to make its products and deliver them to its customers.

The following are the components of SCM implemented in Power Action Ltd.

1. Expertise

This is the strategic portion of SCM. Over many years we have developed a strategy for managing all the resources that go toward meeting customer demand. A big piece of our planning has been the developing of a system to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to our customers.

2. Source

Through our constant supplier monitoring we choose only the suppliers that consistently deliver the goods and services we need. We have an MRP system which enables us to manage the inventory of goods and services we receive from suppliers, including receiving shipments, verifying them, transferring them through our manufacturing facility and authorising supplier payments.

3. Make

This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most data-intensive portion of the supply chain, we measure quality levels, production output and worker productivity.

4. Deliver

This is the part that many refer to as logistics.

5. Return

The problem part of the supply chain. We have a system for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

Component sourcing - Lead times

Achieving shorter lead times on orders is the main thrust for most of our customers. They essentially don't want to be forced to commit to longer lead time orders based on frequently inaccurate marketing information.

The only solution to this problem is to find a manufacturing partner. Someone who understands your objectives and will work to achieve them, but more importantly capable of doing it in practice not just playing lip service to you.

Our inventory management and procurement system handles over 30,000 different part codes ( each specific to a manufacturer and their part code ) and uses a database of over 1,000 global distributors, manufacturers and 'grey' suppliers to track down obsolete and long lead time parts.