End 2 End Value Chain
Source : Supply Chain Stragegy - B. De Smet)
Coherence accross the full Value Chain is critical for the success of your business. Unlucky we see often that targets and policies are defined by function and lead to a kind of "silo" operating model. This optimisation by parts/links in the Value Chain will in almost all cases lead to incoherences, higher costs, an inadequate service level and higher volumes of waste. Ultimately this results in poor financials.
It is essential that all parts of the company and its partners/stakeholders get well aligned on the final goal and service level the company wants to deliver to its customers. A company can be successful in a certain domain applying different strategies (focus on cost/price, or on delivered service/customer intimacy, or on speed of delivery). However what is key is that this strategy is well known, accepted and shared among all stakeholders in the company and abroad. All partners need to be aligned to reach the expected business and financial results.
With Supply Chain 4 Future we will address your Value/Supply Chain strategy and coherence accross the full End 2 End Value Chain, detect and highlight incoherences and look to solve them in collabroative workshops with the key stakeholders. Those Value Chain workshops are an ideal way to get the different stakeholders connecting with each other and aligned o,n the overall strategy.
Case
For a Fast Moving Consumer Goods Manufacturer (printed decorative foils) active in the decorative business and suffering from poor financial performancewe saw very quickly that the production and distribution activities were not well ailgned. Where the business was requiring small lot sizes for a considerable part of its assortment, the manufatcuring plant was liiking to optimize its costs. This led to large machines, long batch sizes and all the inventory pushed into the distribution subsidiaries. As a result inventory was high, write off costs were high, time to market was high and financial results poor. In the proposed solution we proposed to locate the inventory in the manufacturing plant (right after the printing), when the product was still fully recycable, and to invest in a flexible and quick finishing workshop. As a result of this inventory, time to merket and waste were strongly reduced, and financial performance incerased drastically.