Supply Chain strategy

It has never been more challenging for Supply chain experts to retain strategic focus, regardless of the business model, target market, sector and overall value proposition. Faced with complex regulatory changes, disruptive technological developments and demanding customer expectations, organizations are forced to identify new ways to transform their Supply chains into agile & efficient end-to-end ecosystems.

 

As a first step, supply chain executives need to assess, design or re-align Supply chain strategies to the company’s overall business objectives. A shared understanding of “value creation” builds the foundation for a sustainable management of a companies’ interconnected supply chains. Furthermore, an assessment of common objectives helps to detect points of vulnerability and weaknesses and enables executives to deploy effective measures of risk prevention.

However, developing a world-class Supply chain strategy requires more than alignment on shared values on executive level. Three key Supply chain elements need to be synchronized to create an efficient Supply chain ecosystem:

  • Processes
  • Organization
  • System/Tools

Naturally, the way how processes in an organization are structured defines a company’s level of efficiency and agility to react to customer demands (for customization e.g.) and to the volatility of external drivers that influence a product’s lifecycle (seasonality e.g.). In the end, the efficiency and agility of processes along the Supply chain affect a company’s overall performance – and profitability.

The basis for smooth processes along the Supply chain is an elaborated organizational framework. In order to remain competitive, key roles in Supply chain management need to be broader than in the ‘classical’, outdated organization.

A main reason is to give key employees a view on the big picture of the end-to-end process, rather than only focusing on a certain segment. This organizational structure also supports a group-based way of working as it breaks open functional silos and drives cross-department cooperation.

As third pillar an appropriate system set up that delivers the infrastructure for an interconnected Supply chain needs to be implemented. Digitization is disrupting historically grown mechanisms and sequences in processes. Today all steps and processes along Supply chains are data-driven and interlinked through digital data transfers. This forces companies across industries into situations executives often consider as uncomfortable. Main reason for this feeling is that they have are basically pushed out of the driver’s seat by the rapidly increasing need to digitize their businesses – and forced to rely on external experts to do so properly.

Many of our clients struggle to adjust their Supply chain strategies to a digitized, future-ready framework.

We help our clients in implementing both a digital mindset for the Supply chain executives and a hands-on-approach on how to make the change in Supply chain strategy happen.

We do not simply take Supply chain strategy as a derivation of the business strategy. We see it as a mandatory enabler to achieve business objectives. A robust, customer-centric and demand driven Supply chain strategy, interrelated with operational excellence and supported by appropriate technological systems and tools, is our recommended path to success.

However, the success of a strategy is only as good as the company’s ability to execute it. When developing the overall Supply chain strategy and its execution plan, a realistic assessment of a company’s capabilities and competencies both within the organization and in the partner network is a key driver to achieve the jointly defined goals.

Like developing a business strategy, the Supply chain strategy must fundamentally keep sight on the primary purpose of the clients business value offering and strike for improvement of performance metrics – a compulsory approach in competitive marketplaces of today.

We support our clients with a holistic, non-biased value chain analysis in creating best suited, individually forged Supply chain strategies whilst leveraging competencies and best industry practices to enhance our clients’ performance metrics to strengthen their ability to compete on worldclass level.

We help our clients to reinforce existing relationships with their partner network, hence harvesting value contribution benefits along the Supply chain. In addition, we assist in defining a risk mitigation strategy, regulatory compliance, financial management and operating model design. Our unique blend of deep strategy consulting expertise and strong track records in hands-on industry knowledge supports our clients in improving their service levels, profits and competitiveness – just like the Supply chain, in an end-to-end process.

Tangible results at each mission
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