Supply Chain Management Consulting
Supply Chain Strategy / Business Model Transformation
Overview
Companies can create a competitive advantage with the right supply chain strategy, structure and processes that are responsive and cost efficient to meet changing customer requirements. With increasing cost pressure, the advance of supplier and competitor capabilities, and technological development, a company’s supply chain strategy and business model may need to be repositioned and modified to become more competitive.
Different supply chain strategies and business models may include:
• Manufacturing strategy: Build-to-stock vs. make-to-order, full configuration vs. postponement
• Distribution strategy: consolidated vs. fragmented, customer segmentation
• Centralize vs. decentralize management and operations
• Single vs. multiple sourcing
• Supply chain design vs. product design
Business Problem
Are you experiencing these business challenges? Do these questions sound familiar?
Common Business Challenges
• Multi-echelon, fragmented distribution network
• Lack of agility and adaptability; Slow to compete for on-demand services
• High fixed and variable cost structure to maintain competitive service levels
• Lost economies of scale
• Disparate IT systems and processes; no common integrated, technology platform
• Requirement to customize goods and services to diverse customer needs
• Supply chain design and capabilities limit modular product design or product development and design limit supply chain design and execution
• Unable to decouple process from a supplier
Key Questions for Consideration
• How do we create value through our supply chain?
• How can we develop our supply chain to become more responsive to customer demand? Do we have the right structure, technology and processes?
• How and where can postponement or late-point deployment be utilized?
• How can we leverage economies of scale and increase flexibility in distribution?
• Are we treating all customers the same? How are we segmenting services to match customer requirements?
• Do our outsourcing providers have the capabilities and willingness to support a change in supply chain
strategy?
• What technology and processes are required to support a shift in strategy?
• What is the risk? Is it shared risk? How do we mitigate the risk?
Service Solution
Supply Chain Acuity’s Supply Chain Strategy and Business Model Transformation service helps our client determine the appropriate sourcing, manufacturing and distribution strategy to gain a competitive advantage. We develop a business case and quantify the impact of changing business models to support the new strategy. As needed, we help implement the transition plan from start-up to steady-state.
Delivered Benefits and Desired Outcomes
• Develop and transition to a more competitive business model positioned for future growth and profitability, increased asset utilization, and stronger capabilities for a sustainable competitive advantage
• Agility – rapid response to changing business conditions
• Alignment – supply chain partner goals and operations in agreement; internal and external boundaries removed
• Increased revenue growth
• Reduced operations cost, working capital and time-to-market
• Leveraged economies of scale and scope
• Risk prevention and mitigation