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  You are here:  CapabilitySupply chain   September 7, 2010  

 


 

Supply chain analysis

There are new ways evolving to reach the consumer and move towards a demand responsive chain. To find the best way to reach your end customer you need a profile of where value is added in your supply chain.

Understanding who has the negotiating power and what are the likely changes to evolve in the near term is now the base information required to compete.

This understanding frames the scope for supply chain efficiencies plus systems, logistics and inventory requirements.

Some questions you should be able to answer.

  • Do you know the margins taken for the value added by the operators in your supply chain?
  • Can you follow an order and an item through your chain and identify where costs can be reduced?
  • How many of your trading partners will stay with you if your competitors match your offer, but provide smoother least cost supply interfaces?
  • If you invested in IT to reduce your transactions costs, inventory holding costs and order lead times, could you interface your systems with your trading partners?

Typical deliverables include:

  • Performance against industry benchmarks.
  • A profile of the value added at each handling step in the chain.
  • Strategy implications to identify and align supply chain partners.
  • Change management programs.
  • Quantified impacts on network operations, shrinkage, landed cost, service levels and inventory levels.
  • Industry scope for supply chain efficiencies.
  • Project management of industry supply chain programs.


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