A lack of data standards, varying lead times and lack of resources to manage the shipments adds to the complexity. Manufacturers work independently in their own silos – in effect creating “shadow supply chains.”
To help reduce the impact of the “shadow supply chain,” Paul Farnin, Director of Supply Chain Services at Cardinal Health, says to utilize data and analytics to help determine which items are the best to start with for direct shipments. “The most frequently purchased items from a volume or turn standpoint as well as items that have significant dollar value. You should also look at products that have the high potential for expiration. These items drive the most activity and expense and are key areas to focus on,” says Farnin. By aggregating these items into a streamlined supply chain, you can reduce inefficiencies and costs.
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