Cost reduction and consolidation of fourth pallet, recipes for supply chain

The ICIL Foundation took place on May 13, in Madrid the day 'Supply Chain Management, myth or reality?', with the participation of Miguel Angel Miguel, director of 'supply chain' of group Mahou San Miguel; Lluís e. Domènech, director of training of the ICIL Foundation, Richard Catelli, director of innovation and the ICIL logistics support, and Javier Escobar, Member of the Committee of training ICIL. At that time, Domènech explained that "in Spain I know of only 20 companies, small and medium-sized enterprises, which have implemented the collaboration of 'supply chain', in contrast to USA and United Kingdom, for example, where this collaboration is a reality for years and recorded savings in logistical costs between 20 and 25 %". For its part, Miguel Ángel Miguel added: "the 'supply chain' is not a myth, we have improved in recent years." For me in Spain it is a reality in construction. In this regard, we have to have very clear when it comes to collaboration between two companies these three variables: more for the same reason; more to more; and more for less (logistics professionals). What I do not accept is never do less for less. "There are companies selling costs and others that sell brands".

The training director of the ICIL Foundation analyzed the current situation invites to reduce costs or the commercial margin, before the brutal fall in consumption and new habits of buyers. Domenech discussed: "cutting costs, either amending the structure of the product, or seeks the reduction in the logistics, the amplitude of the entire supply chain." This is where the collaboration Supply Chain between company, customers and suppliers. Even with own competition. "But we are not yet ready for this kind of collaboration, when for example, a consumer goods company not allow that in the same truck travel products within its jurisdiction, although they coincide in the linear".

Miguel Ángel Miguel was in favor of bet more for the differentiation of the product and increase the competitiveness and added value: "by the way, I have traveled to Germany where the quarter of pallet begins to have relevance". For his part, Richard Catelli noted: "is clear that the consumer has changed and what we need to implement new strategies of processes based on innovation." The cost is a means, not an end, cost reduction should also mean input value and improvement of the quality on an ongoing basis. "In any case the great solutions and strategies must know adapt them to the profile of each company in a very specific and concrete manner". Javier Escobar, Member of the Committee of training ICIL, said: "We must be clear about the definition of 'supply chain' and what it means to implement it." Each time we have more business cards as 'supply chain', but by each company director means something different. But ultimately, the logistics are volume, if I have volume will have competitive costs. If to have volume I have to work with the competition, I do not understand what the problem is. "The 'supply' of truth is what allows to understand us throughout the supply chain, customers, but also with other chains of value, both suppliers and competitors."