Working Capital down - Service Levels up

Working Capital down - Service Levels up

Blog

> www.scm-blog.de
(German only)

With Supply Chain Management you gain ...

Supply Chain Strategy

Business model

Beneficial process optimization only starts on the basis of a sound business model. Successful business models describe how a company interacts with its customers, partners, and other stakeholders driven by dynamic markets and fully aware of political, social and environmental challenges.

Focus

Are you rather large and a market leader or a boutique, niche player? If you know your current position and future ambitions, you have a clear advantage. Rather than copying the competition you can gain your customers‘ trust and business by making the right choices. Three decision shape your operations management focus:

Supply Chain Design

Supply, Production, and Distribution Networks

You want to ensure a high service level for your customers – sustainable, cost efficient and with low working capital. Strategic considerations are crucial as well: Presence in local markets, compliance with environmental requirements, risk mitigation, forward looking flexibility. Before determining locations, decision power in the supply chain needs to be clarified. Example: will you manage your supply chain centrally or decentrally?

Simulation with an experimental game

Concepts are good, testing is better. Nothing comes above personal experience: In our experimental simulations - fully customized to your company and processes - you can experience the future first hand. Findings can be directly implemented in an adjusted strategy. We help you test new business models or processes:

Supply Chain Processes

Manage, plan, control

Looking in the rearview mirror is important for analyzing what happened. For good decisions, however, you need to look ahead, based on solid master data and timely status information.

Fast Processes (Lean SCM)

Creating advantage through increasing the speed of all operational processes. This is not only important within your company, but also must be done with suppliers and service providers. It includes information processing, physical movement of materials and of course the value creating processes.

Transparency and foresight

Supply Chains are complex. Most things do not happen on-site. It is therefore crucially important to define clear milestones on the path to the final customer and to create full transparency – visually and metric based. The key slogan is: „No surprises!“ The further this transparency reaches upstream and downstream into the supply chain, the earlier you can recognize deviations and avoid resulting problems:

Supply Chain Metrics

Avoid acting in the dark. Metrics support the day-to-day management and control or they give valuable information on the overall performance of the supply chain (e.g. Cash-to-Cash Cycle). Enhanced with regular qualitative evaluations, metrics are a good indication of how well the chosen supply chain strategy is being lived.