Supply Chain Management in Engineering: Optimization Strategies for Efficiency and Cost Reduction

Abstract

Supply Chain Management (SCM) plays a pivotal role in the engineering industry, where the complexity of products and the globalization of supply chains demand efficient and cost-effective solutions. This narrative review explores optimization strategies in SCM within the engineering sector, focusing on strategies that enhance efficiency and reduce costs. The review begins with an examination of foundational SCM theories and the key components critical to engineering supply chains, including procurement, production, logistics, inventory management, and distribution. Current challenges such as supply chain complexity, technological limitations, and cost-related issues are analyzed to highlight the barriers to efficiency and cost-effectiveness. The article further delves into specific optimization strategies, including strategic sourcing and procurement, inventory management techniques like just-in-time and demand forecasting, and logistics optimization through route and load management. The role of sustainability in cost reduction is also discussed, emphasizing energy efficiency, waste reduction, and sustainable sourcing practices. Case studies from various engineering sectors, including automotive, aerospace, and civil engineering, illustrate the successful implementation of these strategies and provide a comparative analysis of their outcomes. The review concludes by exploring future trends in SCM, such as the integration of emerging technologies like blockchain and AI, the impact of Industry 4.0, and the increasing focus on sustainability and resilience.