In a supply chain environment, you have four elements:
- Physical Materials and Services
- Returns for Repairs, Recycling or Disposal
Below are the five Vs that can impact this process, positively and negatively, and how supply chain security cameras can help with visibility and mitigating risk.
This is exactly as you might expect – the ability to view all the materials and individuals within the facility. When you have a good source of monitored visibility, you can become aware of minor, incremental changes from intake to output. Better visibility helps improve the next step: velocity.
This part of the management cycle is meant to enhance the process by:
- Determining faster modes of transportation to and from the site
- Moving to Just-in-Time processes
- Eliminating steps that don’t add value
- Identifying bottlenecks through process analysis
- Speeding up the flow to allow faster invoice processing
Implemented effectively, this process allows faster product turnover thus saving your organization time and money.
This is a measurement system that looks at fluctuations dealing with monthly averages on:
- Time to complete orders
- Number of defects
- Daily sales
- Production yields
The goal is to decrease monthly variability, so the above items are relatively constant month-after-month. If you have a great degree of variability, your organization will need to invest in safety stock as an insurance policy to handle order spikes and returns. This works against velocity and may leave your organization with excess inventory that creates a risk for stolen or never used inventory.
In addition, if any of the processes from the supplier to your factory to the distributor breaks down (either slows down or speeds up), your variability index will increase, creating the bullwhip effect. Blockchain technology, which is not fully implemented at this point, will dramatically impact this effect in a positive vain and minimize variability.
This is the product and services portfolio that need to change to meet customers demands.
This is the amount of product being produced in a given time. The perfect supply chain is flexible enough to expand and contract volume based on demand.
Once you get these five Vs in line, your organization should have better cashflow, information and the right level of materials in the supply chain at any given moment. Your organization will be truly agile.
How to Mitigate Risk
Overlaying the five Vs is the inherent problem of risk. You need to make sure loss, theft and injury do not occur.
Security cameras for business owners are the perfect tool to reduce risk and increase visibility. Security cameras can provide critical video resources to monitor theft, false workers compensation claims and inventory control.
Camera Security Now Can Help
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