Supply Chain Strategy
From product development and sourcing through manufacturing and distribution, it’s never been more important to have all the moving parts of the supply chain synchronized. This requires a top-down strategy supported by all roles that touch the supply chain – which is to say, everyone.
It also requires commitment to develop a governance structure, end-to-end processes, supply chain skills, performance metrics and to enable state-of-the art technologies that move a supply chain strategy from paper to reality.
Complex questions, profitable answers
As product options and customization add complexity to the supply chain, companies are turning to new business models in the search for profitable growth. But the paradox is that it’s hard to penetrate new markets in search of revenue without inviting new cost and inventory headaches along the way. Supply sources become more distant from their bases of demand, fuel costs mount and opportunities for labour arbitrage diminish. Quality and security become riskier. So complexity ends up breeding complexity.
With a sound supply chain strategy, a company can move past bottom-line cost containment and use the supply chain to spur top-line revenue growth. It can also answer questions such as: How do we fulfil shifting customer expectations? What should we own, and what should we outsource? What tools, decisions and deployments will it take to make us as productive as possible? To begin, a company must understand how operational changes, financial value and overall business value influence each other. And above all, change on this scale needs senior sponsorship to prevent the necessary vision and authority from becoming too diluted.
How we can help
We help clients in their efforts to deliver more value at every step across their end-to-end supply chains – from design and planning through sourcing, manufacturing, delivery and return. We do this by helping to define a global supply chain strategy that not only aligns with a company’s overall business strategy, but also provides a playbook and road map for execution.
Our approach focuses on analyzing our client’s supply chain along three major dimensions: its business value from both financial and customer standpoints, the components and capabilities of its management, and the leadership alignment and infrastructure to support organizational change.
Our services include:
- Construction of an “as-is” baseline of supply chain operations
- Identification of relevant third-party benchmarks and leading practices
- Gap analysis to identify areas for improvement
- Prioritization of needed improvements
- Creation of a road map and business case for a new supply chain strategy
We help clients generate benefits such as:
- Improved efficiency
- Increased customer satisfaction
- Reduced operating costs
- Increased revenue due to higher fill rates and in-stock inventory
- Profit maximization
- Right-sized inventories
- Improved asset and capacity utilization