Transparency in supply chain should be so much more than just a buzzword. Unfortunately, many businesses only pay lip-service to transparency, and even prices which seem low still include hidden costs and complexity.
Traditional supply chain models rely on secrecy, hidden margins, and a barrier between the client and manufacturer, all of which can mean a loss of control for the customer.
A new, disrupted business model can offer customers so much more than simple cost savings through transparency. A completely open-book policy means that everything is visible throughout the whole process – from raw material costs, through to which factory is being used, what prices that factory are charging, and what mark-up (if any) is being added. Every variable can then be examined openly and optimised to achieve the best outcome.
LeanPie are revolutionising supply chain using this transparent model, with impressive results for clients. The most obvious marker is cost savings, but this isn’t the only benefit transparency offers.
Complexity becomes a thing of the past. Dealing directly with all parties involved, and passing on true costs means much greater clarity and accuracy in the planning stages of each project.
Work gets into production more quickly when communication is open and honest, and project management is more streamlined.
Transparent models put the control back into the hands of the client. Acting as an extension of the marketing or procurement team, a truly open model like that of LeanPie means that at every stage, decisions can be made with all of the relevant information – whether about cost, quality, speed or design. Clients retain their IP and all rights to technical drawings, so there is no ambiguity.
With no more hidden costs, the decision on exactly how involved to be in the process is completely in the hands of the client too. There’s no hidden running costs, or stealth margins on account management. Clients are able to make informed decisions faster, and only pay for the services they actually need.
Often the snags in a project arise because of too many inefficient levels of project management. LeanPie’s lean manufacturing model allows direct communication with qualified engineers as project managers, (and even direct to the factory itself if needed) meaning less risk of misunderstandings or mistakes.
Quality control is more efficient this way, and any problems arising can be quickly dealt with by speaking to the right people at the right time. No more back and forth relaying messages!
Of course, the biggest benefit of using transparency is to achieve lower costs. LeanPie go even further than many businesses claiming to be transparent, by relaying not just the price to customer from the factory, but even the raw material costs.
This allows clients to more fully understand if the low costs being quoted are sustainable – after all, it’s no good getting a great price, if you have absolutely no way to benchmark it. The transparent model allows customers to optimise their spend, with a true understanding of how costs have been built from the ground up.
Time for a change?
While many companies say they operate in a transparent way, very few actually share enough information for it to make a meaningful difference. Manufacturing costs, factory information, processes and margins are often buried, making it difficult to achieve true cost savings.
LeanPie are experts in lean and transparent manufacturing. Thriving on working alongside clients at every step of the process, LeanPie are able to achieve the best possible outcomes for clients sourcing retail equipment, with no more hidden costs. Outdated or mis-managed supply chain can be a thing of the past – transparency is the future!
Want to find out more? Talk to us about how our transparent supply chain can help you with your next project.