SMASCH, the concept
SMASCH is a holistic, sustainable concept that can be used in every supply chain area.
The concept contains the four elements: purchasing product, intended use, market and supplier.
The key element of the concept is the clever combination of these elements.
We are now going to give you a little insight into the various fields without going into too much detail.
Purchasing product
We know that, depending on the technology, complexity and requirements of the purchased product, it takes between 6 and 18 months until we have established a functioning and sustainable supply chain. It is also very important to know the life cycle of the purchased part, for a pure spare part that is at the end of the life cycle, I do not design a new supply chain. The size, weight and transportability are also decisive factors. Of course there are a few more factors to consider. You already know much of this data today. These are known in your operating system or in the various functions in your company. It is of course also important that this data is up-to-date and regularly updated.
Intended use
One of the main points here is the use of the purchasing items. In which finished components, products is the purchased part used? How great is the strategic importance of the purchased product? Do I have multiple uses, do I use the product in different production locations? These are extremely important factors that you need to define in your supply chain. In addition to the purchase item, the concept helps also in working out whether you should choose a multi-sourcing strategy for your defined purchase product.
Market
The market in which you want to purchase your purchase product and in which market you sell your products is also very important. Think of customs regulations and trade wars as we are currently experiencing between the USA and China. Topics such as political stability, technological status, delivery time and accessibility are included in the concept. Here you will do a country risk assessment. The concept also supports you with available evaluation systems and country ratings. The forwarding option also comes into play here. Truck transport, ship, train or plane transport are also decisive for your evaluation.
Supplier
Your partner plays an important role in the SMASCH concept. Simple assessments such as size or whether it has several production sites are just as important as financial stability or the possibility of setting up a safety stock in a warehouse. But again, most of the information is available when conducting a supplier assessment.