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Supply Chain Strategy
Unlocking hidden value
Successful skydiving teams execute precise movements, split-second timing, and complex coordination—all at a dizzying height and speed. A company’s supply chain is similarly complex, requiring careful coordination of its many moving parts in alignment with the company’s business model and competitive positioning.
Deloitte’s supply chain strategy team helps senior executives align supply chain capabilities and operating models with their business strategies. We take an integrated view of the supply chain, unlocking hidden value in the connection points between functions and value chain partners.
This approach incorporates process, organization, technology, and performance measurement to help executives understand the trade-offs between cost and flexibility in response to margin pressures they may be facing. We also address those trade-offs to achieve the desired balance between cost service levels across the supply chain.
Supply Chain Strategy services
- Vision alignment – Quickly assessing, evaluating, quantifying, and executing on critical operating model and structural changes needed to enable the broader business strategy.
- Segmentation and market offering alignment – Using segmentation, supported by activity-based cost-to-serve analytics, to align supply chain offerings with customer values and increase both margin and customer service levels.
- Risk and resiliency – Identifying where important supply chain vulnerabilities lie and identifying strategies to address risk exposure.
- Mergers and acquisitions – Defining a common operating model so companies can leverage synergies and reduce costs.
- Operating model redesign – Aligning a company’s broader operating model and its supply chain strategy for improved efficiency across the value chain.
- Analytics and performance management – Using real-time data analytics, visualization software, and other resources to help understand cost to serve and facilitate informed supply chain decision-making.
- Global footprint strategy and network design – Aligning supply chain, supplier base, and customer footprints to meet current requirements and position for growth.
Potential bottom-line benefits
- Significant top-line growth
- Improved gross margin, operating income, and asset efficiency
- New profit sources in emerging markets
- Risks prioritized based on intensity, vulnerability, and node criticality
- Supply chain becomes a competitive advantage and growth enabler
Companies need to align supply chain capabilities and operating models with their business strategies.