Supply-chain optimisation could save public money
Date Posted: 18th February 2010
With public sector budgets at breaking point, as illustrated by the recent announcement of 700 jobs to be cut in the NHS in Leicester, experts at Daylight Supply Chain Services believe millions could be saved by improving procurement and stocking systems, freeing up more cash for clinical care.
The application of supply-chain management techniques has saved millions of pounds for companies in the private sector, and now Daylight systems could become a weapon in the public sector arsenal to reduce wastage, improve efficiency, and cut costs in the supply-chain.
Using thorough analysis and implementing custom designed advanced software systems, mutually beneficial relationships are developed between customers, suppliers and other stakeholders by increasing collaboration and transparency, and speeding up cross-functional business processes. A large proportion of costs incurred can be caused by a lack of clear communication in the supply-chain.
Managing director of Daylight, Tony Hardy, said consultants for the company had saved its clients many millions of pounds over the last 12 months alone.
“Getting the supply chain correct is essential for the efficiency of all organisations, but making savings is often not as straight forward as it might seem. Keeping each individual cost in the supply-chain to a minimum is not necessarily the best way to get overall costs to their lowest possible levels. In reality the most effective way of keeping costs down is by enabling improved coordination, control, and stakeholder relationships.
“We should soon be running trials which will provide us the opportunity to cut costs and reduce waste in the public sector, and potentially to spread the mantra of effective supply chain management deeper into the psyche of public sector organisations at a time when savings are all important,” he said.