Optimization of Supply Chain Processes Thru Long-Term Alliances

By Guillermo Fernández de Jáuregui

In ONILOG Group we are committed to create alliances, only when long term business relationships are created, and trust is developed, reliable and strong supply chains may thrive; the objective is to create value instead of just cost effective.

In our 21 years of experience we have managed multiple logistics projects and, after analyzing how to create value added processes, it is only if we change our mindset when it happens.

Usually the Manufacturer does not want to be involved in their supplier logistics processes and acts as follows:

Traditional Model

1) The Manufacturer needs its providers to start operations near the plant location.

2) Each provider finds the supply chain solution independently:

  • Starts its own DC and/or production, or 
  • Looks for a Third-Party Logistics company

3) The Manufacturer has a fractured supply chain with multiple logistics operators that now needs to manage and control:

  • Inventory levels.
  • Delivery process.
  • Reorder points.

4) The logistics cost is included in the product prices and, as such, it is not transparent.

In ONILOG Group we seek to change this process into a more efficient one, following this model:

Onilog Model

1) The Manufacturer starts a strategic long-term alliance with Onilog Group to develop an efficient Supply Chain.

2) All the providers deliver their products to Onilog Group, who monitors and controls:

  • Inventory levels
  • Delivery process
  • Reorder points

3) The provider can easily enter into a consignment program since:

  • Will not have to invest
  • Will not have to look for a Third-Party Logistics company nor manage that relationship
  • Is not responsible for the delivery of goods to Manufacturer

4) The Manufacturer has a solid, efficient and consolidated supply chain operation with a strategic ally.

The following charts summarizes the comparison between the two models:

And the main benefits created are:

  1. Cost savings
  2. Flexible and scalable service
  3. Professional supply chain expertise
  4. Continuous improvement & optimization of your supply chain
  5. Free-up valuable time & capital investment 
  6. Technology access
  7. Integrated services under one provider

Specially in this period impacted by global uncertainty, nor the strongest or the smartest will thrive but the one faster to adapt to the new reality, at ONILOG Group we want to be part of the solution to your needs.

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