How to raise your Supply Chain business to the next level
Deloitte Consulting's Procurement specialists help clients reduce their cost base and increase efficiencies by implementing fit-for-purpose solutions that are practical, affordable and results-driven.
Your Supply Chain organisation faces numerous challenges that influence its effectiveness. Most of these challenges can be classified on three levels: people, process and technology.
People challenges include:
- High turnover rates
- A limited supply of skilled labour and service providers; and
- The logistics around attracting and locating personnel to remote operations scattered across the globe.
Process challenges include:
- Limited procurement negotiating power in a global supplier field
- Balancing local legislative requirements around BBBEE with cost savings opportunties of sourcing from low cost countries
- Coordination of complex global distribution networks across multiple regions and modes
- A lack of upstream information necessary to perform adequate planning and forecasting; and ineffective processes to assess and quantify the magnitude of various risk types.
Technology challenges relate to:
- The use of multiple ERP systems across organisations
- Poor data visibility
- Poor data quality and
- The limited ability to consolidate data, and a lack of effective analytical tools to support the modelling and evaluation of supply risk.
Supply chain management is further complicated by uncertainty. It is indeed a quandary that as the need for more agile service delivery increases, so does the uncertainty and supply risk.
Despite these challenges, supply chain organisations are under immense pressure to drastically reduce costs and improve efficiencies. To do this, many companies apply global best practices in order to standardise processes across their operations. However, we understand that operations within the same organisation differ in maturity and operate in unique contexts. CPOs need to realise that standard practices are not always appropriate and "best in class" doesn't necessarily mean "best for you". Supply chain strategies need to take business maturity, purpose and operating context in mind, and align this with the overarching company strategy. Only once companies move from best practice to best fit, will supply chains truly become optimal support functions in their organisations.
This solution allows supply chain practitioners to assess themselves and their companies to identify where they most need to spend their efforts to define practical, affordable and results-driven fit-for-purpose solutions that will raise the overall capability of their Supply Chain organisation in a step-wise approach.