Manufacturing
Remaining competitive as a manufacturer is no small feat in today’s economy. Rising material costs, increased competition, and the growth of outsourcing all contribute to reduced margins for manufacturing firms. AArete professionals have experience working with both large and small scale manufacturers in supply chain optimization and overhead cost reduction. AArete professionals understand what it takes to be a truly lean manufacturing organization and have the knowledge and solutions to help you get there. Below is a sampling of services we offer to our manufacturing clients:
Strategic Sourcing & Procurement
Purchasing function optimization can be a key financial lever for your organization; small improvements often result in a significant impact to the bottom line. AArete Strategic Sourcing & Procurement solutions typically achieve sustainable savings of 5-15% on the addressed spend in a compressed time-frame.
Customer Fulfillment Assessment and Optimization
Fulfillment of customer demand is critical for any organization. Fulfillment rates impact customer service ratings as well as an organization’s overall financial performance. Poor fulfillment processes can rapidly destroy shareholder value and customer sentiment.
Fulfillment costs make up approximately 10% of a company's sales, and typically include: transportation, distribution, inventory carrying cost, customer service/ order capturing, and other administrative costs. A 10-30% overall improvement in fulfillment will cause a major positive value impact.
AArete is committed to working with our manufacturing clients to implement an optimized fulfillment process that can drive major benefits in operating cost, working capital, and revenue generation.
Freight Cost Analysis and Reduction
We apply our proven methodology to deliver long-lasting results in the areas of carrier selection, consolidation, rate negotiation and process improvements. The end result is a comprehensive solution that is nimble to changing market and business conditions, while delivering the highest level of customer service at the best rates.
- Review and Benchmarking of Current Rates
- Transportation & Logistics Current State Review & Recommendations (examine parcel, less-than-truckload, truckload, rail, overnight air, next-day air, air freight scenarios)
- Carrier Assessments
- Accessory Charges Review (fuel surcharges, minimum charges, liftgate/ forklift service charges, etc.)
In addition, AArete also offers the following services:
- Logistics Outsourcing Feasibility Analysis
- Make/Buy Materials Assessments
- Manufacturing Software Selection & Implementation
- Network Design
- Pricing Analysis
- Supplier Stratification & Selection
- Warehouse Management
- Waste Reduction