Recognizing Opportunities in the Supply Chain

The supply chain is a collection of companies and individuals providing goods and services. It is usually organized around lead companies that service a final customer (GM, Walmart, Boeing, Exxon, etc.). These lead companies organize “suppliers” that can provide products or services their customers need directly or indirectly assembled into total products and groups of products.


These groups of suppliers are connected through physical, information and control flows that work to accomplish an end goal. These connections are not perfect and usually have gaps and constraints in them that produce an advantage or disadvantage for one party or the other.

For example, information is power and the lead customer has advanced knowledge of customer demand and uses this to negotiate an agreement with suppliers that may not have this information. Information availability constraints, often characterized by dependencies on email, faxes and spreadsheets, are a major problem or opportunity in any supply chain.

JKDA identifies these gaps and develops process and leading edge technology solutions (Cloud based and Software as a Service -SaaS) that can be rapidly implemented by the lead company to change the game and generate savings in the supply chain. In addition, often this shifts the power from the suppliers to the lead company and the “surplus profit” being obtained by the supplier can be returned in whole or in part to the lead company.

Read an
example of a segment addressed by JKDA.

A recent success for JKDA:

The Problem: For companies that rent equipment, managing the process to avoid the hidden costs is critical. Costs due to late equipment returns, under-utilized equipment when on rent, and the purchase of equipment that has been lost or stolen.

In researching these problems, you find a lack of communication and collaboration. Renting companies generally do not share their forecast requirements with their suppliers, while rental equipment suppliers rarely share their equipment availability with their customers. This lack of “collaboration” leads to inefficiencies throughout, and results in the majority of rental transactions being handled as emergency orders versus being well planned and reliably executed.

The JKDA Solution: A web-based Rental Equipment Management System (REMS) and process was implemented to solve this problem for a large Canadian energy company working in the harshest of environments in Northern Alberta province. The Canadian energy company recognized a 700% ROI in the first year of operation.

© 2011 Kevin McCormack