Supply Chain

Many companies in the manufacturing sector are presented with supply chain challenges every day ranging from identification of new suppliers and materials through manufacturing transportation and distribution to customers. It is not uncommon for both complex, multi-national original equipment manufacturers (OEMs) and small or mid-sized manufacturers in the U.S. to be faced with challenges. From reducing risk and volatility to identifying and collaborating with suppliers through understanding the true cost of the supply chain, MEP's Supply Chain Optimization initiative provides an opportunity to assess and implement a strategic solution.

Supply Chain Strategy

Program Objectives

  • Demonstrate the enemies of supply chain effectiveness including, destabilizing effects of dependency, variation, lack of supply chain visibility and forecast inaccuracy
  • Provide an understanding of MEPs Supply Chain Optimization process
  • Introduction to a roadmap intended to guide companies towards improved collaboration and supply chain integration

Supply Chain: Total Cost of Ownership

The Total Cost of Ownership (TCO) method is a set of related concepts that allow for the quantification of costs for every activity along the supply stream. TCO takes into consideration all costs related to the acquisition, transportation, storage, and selling of purchased goods or services, so that sourcing decisions may be made strategically. Use of the traditional Piece-Part Variance method of costing has been shown to underestimate these visible hidden costs by more than 15%.

The TCO calculator introduced in the session facilitates the side-by-side comparison of up to four suppliers. It also permits the analysis of multiple sourcing scenarios. TCO focuses on minimizing the total costs while maximizing value to the customer. It encourages a sharper focus on the big-picture concept of complete supply chain optimization.

Program Objectives

  • Provide participants with an overview of Total Cost of Ownership concepts
  • Review key elements of TCO
  • Contrast Piece-Part Variance method with TCO costing
  • Understand the importance of implementing an effective TCO strategy
  • Learn how to identify and measure TCO cost drivers
  • Demonstrate the use of the TCO calculator
  • Learn how to input data, interpret results and use the output of the analysis to make strategic sourcing decisions

Supply Chain: Risk Management

Within the volatile global supply chain, risk is an inherent component that must be accounted for. In this session you will learn how to identify the general categories and evens that most adversely affect supply chains, and the benefits of developing an effective overall risk mitigation strategy. The strategy includes creating a risk management plan which documents mitigation strategies, describes trigger events, and establishes monitoring metrics and activities. Participants will also learn how the financial impact of risk is determined using a tool referred to as Value at Risk(VaR).

Program Objectives:

  • Understand the impact of risk events for which no risk management strategy exists
  • Recognize the necessity of a risk management strategy
  • Learn how to estimate the financial impact of a potential risk event
  • Incorporate financial considerations within the Total Cost of Ownership model

Consulting Options

Inventory Management

  • Cycle count program implementation with root cause analysis and corrective action: Objective is to improve inventory accuracy, reduce inventory, and lower cost.
  • ABC inventory, supplier, and/or customer classification: Objective is to reduce cost and increase profitability and reduce inventory.
  • Obsolete and slow-moving inventory (OSMI) identification and reduction planning: Objective is to eliminate or greatly reduce obsolete and slow-moving inventory to reduce inventory, free-up capital and lower carrying costs.


  • Supplier negotiation training: Objective is to reduce piece part prices, packaging and freight costs while building mutually beneficial partnerships.
  • Supplier development: Objective is to ensure suppliers are aligned with company goals, support open collaboration, improve on-time-delivery, and increase product quality.
  • Forecasting: Objective is to increase organizational performance through more revenue, increased profits, and more satisfied customers.
  • Safety stock: Objective is to reduce inventory and carrying costs and free-up capital.
  • Sourcing strategies: Objective is to reduce cost and improve quality.


Total Cost of Ownership:  TCO is a method for quantifying the costs for every activity along the supply stream, including acquisition, transportation, storage, and selling of goods. TCO allows strategic sourcing decisions to incorporate social costs, which historically have been difficult to assess. The working session also introduces a TCO calculator, which allows a side-by-side comparison of up to four suppliers and the analysis of multiple sourcing scenarios.

Risk Management –Evaluating, assessing, and prioritizing the probability of unexpected events are part of Risk Management, which is essential for an effective supply chain. This session helps participants create a risk impact analysis, including the financial implications of unexpected events.

Executive Engagement –This series of working sessions focuses on the critical components required to create and implement a supply chain plan that delivers higher value, including profitability and satisfaction, for every stakeholder within the system. By the end of the program, executives will better understand cause and effect within supply chains and have a clear strategy for improving supply chain performance.

Lean Logistics –COMING SOON- This workshop addresses transportation and warehousing challenges. Through lean principles, the workshop identifies opportunities to reduce costs, run a smoother operation, and increase value-add to both the organization and the customer by addressing waste found during the inventory flow from supplier to customer.

Supply Chain Skills for Success 

Four-Day Manufacturing Training Boot Camp for Supply Chain Professionals. Candidates will receive a Purdue University Certificate of Learning.

Day 1 Risk Management: Learn about common risks facing manufacturers and methods and tools for mitigating and managing risks, including FMEA, SWOT, and root cause analysis.
Day 2 Supplier Quality Management: Learn the benefits of having a formal system for selecting, developing, monitoring, and evaluating suppliers as well as the associated requirements from ISO 9001 and IATF 16949. Gain hands-on practice developing your supplier quality management plan.
Day 3 Supplier Auditing: Learn technique and strategies for auditing suppliers to requirements. You will also develop a tool for auditing suppliers and develop a supplier scoring system.
Day 4 Basic Contract Negotiations & Test: Learn techniques and tactics to become a more effective, successful, and collaborative negotiator.


Aaron Ramsey
Aaron Ramsey
Lead Service Manager for Quality

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