The Energy Solution Group has built a strong supply chain using the basic principles listed below. This is a summary of my experiences over time that allow us to best serve our customers and vendor partners. It sounds simple enough, but very few companies execute it well!
Get the right product to the right customer at the right time:
A supply chain is the process that brings a product from the corresponding manufacturers to the point at which it is available for sale. The supply chain specialist oversees the steps that comprise the supply chain process: logistics and distribution. This process can be owned and managed by one or multiple companies working together to bring a product to its end user. If a company owns its supply chain then it has control over every step in the process. Great effort goes into making sure that the supply chain is effective, on time and cost effective.
Planning
- The supply chain specialist directs the process which includes the planning of procurement, inventory control, logistics and distribution. The specialist ensures that every step of the process is functioning effectively to avoid costly delays and lost sales opportunities. The supply chain specialist’s first and most important requirement is planning. Timing is very important in any supply chain. If one component is out of stock or unavailable at the exact point in which it is needed, then you do not have a cost-effective supply chain.
Communication
- The next requirement is communication. The supply chain specialist must communicate his needs and objectives to line specialists and key personnel in procurement, development/manufacturing, logistics and distribution. This will help the entire team understand the timing required and individual input necessary to make the process run smoothly. Any miscommunication of expectations could generate costly delays.
Cost Reduction and Process Improvement
- Cost reduction and process improvement is an ongoing requirement for the supply chain specialist. If a process can be improved or sped up, then productivity could possibly be increased. This ongoing task is continually being examined within the supply chain itself. Cost reductions and increases in productivity usually equal higher profits for all involved, including the customer.
Customer and Vendor Management
- The supply chain specialist must manage the relationships between many different customers (internal and external), vendors and information technology systems. She must keep the material or services flowing smoothly. In order to do this, the specialist must have the cooperation of the company’s vendors. Relationship building is important in maintaining this high level of service and quality. The specialist must take responsibility for the logistics of returns as well.
Team Building
- A good supply chain specialist will train, develop, mentor and assist his subordinates in all of the departments that fall within the supply chain process. It is essential that the various components of the team function effectively. Constant process and employee review is needed to ensure that the process stays cost effective. It is about making the processes of procurement, development, logistics and distribution as cost effective as possible. The chain must be continually evaluated in order to produce better techniques, cheaper materials and faster processes.
Written by:
Brian Gould
President and CEO, The Energy Solution Group






