Increased Real Bottom Line Profitability
We utilise and encourage intelligent buying strategies to make your company's purchasing operation a true profit centre.
We are the preferred partner of engineers, procurement professionals and supply chain teams all over the world.
Whilst SAT is best known for providing a competitive advantage to companies amongst their own peers through our Global Strategic Partners Program, we offer B2B buyers access to our tactical sourcing desk for spot buys. This is often the ideal way to see how SAT is changing the way that industrial technologies are bought in the global marketplace.
Our tactical sourcing team is the best in the business at leveraging our supplier-agnostic approach to the global market. Regardless of whether the equipment is current, obsolete or even reconditioned, the desk will surface the best purchase options to maintain quality and reliability.
Inventory is one of the biggest of the seven wastes identified in Lean methodology and tends to occur when excess inventory is used to cushion the enterprise against process problems. When counting and analysing inventory, it is not unusual to find pallets of items stored in odd locations due to previous problems or as a contingency. Critically, however, our experience tells us that often this padding is not only wasteful in a Lean Six Sigma sense, but often creates a perilous false sense of security.
Our proprietary risk analysis based on our knowledge of the real metrics of the category supply chain, which can then guide a restructuring of your inventory strategy, will almost certainly bring the most direct short-term impact to your company from our partnership.
The Value Stream Map is a representation of the flow of materials from supplier to customers (internal and external) through your organization. As well as physical materials, the flow of information is also a key element of the value stream mapping process that we use. We include in our analysis how industrial technology like automation and control equipment is ordered, the frequency and method, and how we translate that back to a profit calculation of Total Value of Ownership minus Total Cost of Ownership.
Taking a value stream perspective means working on the big picture, not just individual processes, and improving the whole, not just optimizing the parts. Within the flow, the movement of material and information through the system, opportunities to create compelling communication tools, business planning tools, and tools to improve the real profitability of the enterprise exist. This can be revolutionary and can be achieved with a comparatively light resource burn and a correspondingly high ROI.
Our interpretation of the Demand-Driven Supply Chain focuses on better ways to capture the demand signal from the frontline solutions team. Our Kanban-inspired pull-through model allows us to satisfy the demand trigger for the specific item in multiple ways. The ultimate goal of being demand-driven is to ensure the best fulfillment of the specific need is met via the highest value channel.
Performance metrics and incentives across the enterprise must be aligned so that everyone is marching in the same direction. The classic organizational structure, where logistics optimises transportation costs and procurement primarily evaluates landed material cost, leaves considerable value on the table. Our demand-driven process encourages a focus on the end-to-end process and develops a balanced scorecard of metrics to achieve an overall competitive advantage.
Dealing with cash flow and budget variance in businesses that utilise industrial technology in any meaningful way is a significant challenge. Beyond the issues that all forms of inventory create on the balance sheet, the key point is that though the inventory itself is visible, the most devastating costs and cash impact are not. The conventional wisdom is to eliminate as much inventory as possible and thus conserve cash.
The core problem is that your organization probably has several instances in its corporate memory where the lack of a key piece of equipment in inventory created a cost event that dwarfed all previous savings achieved. This risk quotient of cost exposure divided by estimated cash savings for specific items is, without supply chain visibility and accurate information is extremely difficult to calculate. Our proprietary approach to Risk Intelligence analyses your key inventory items and provides our RQ value that you then implement in your own decision-making process.
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