Six Sigma Blog: Six Sigma in Supply Chain Yields $5m on Average

Six Sigma in Supply Chain Yields $5m on Average

A recent report entitled, “The Supply Chain & the Impact of Quality Initiatives” found that the incorporation of quality initiatives achieves an average savings of $5 million.  Achieving such gains relies primarily upon companies focusing on demand/supply management and planning, production planning, and scheduling.  Additional considerations should also be inventory and warehouse management.   While the overall conclusions of this report are by no means surprising, as the benefits of programs like Six Sigma are widely touted, some specifics on what emphases pay off when implementing these programs were.  For example, the study cited that those companies who kept a better eye on the supply chain developments of competitors achieved much higher gains through the incorporation of programs like Six Sigma than those who did not.  IndustryWeek Reports:

Successful companies noted that keeping track of practices of peer company leaders and other industry leaders are critical to identifying the supply chain critical improvement opportunities.