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Solution

Supply Chain

Supply Chain

Turn your supply chain into a competitive weapon

Our team of supply chain experts has tackled the toughest supply chain strategy challenges and produced significant value for our clients. Our ability to combine cutting-edge digital technologies, deep domain expertise and a rich database of industry KPIs into highly effective, customized solutions makes us the perfect partner to collaborate with on your supply chain reinvention. We not only integrate seven core capabilities, but augment that expertise with complementary skills and experience spanning change management, enterprise technology, digital transformation, and more.

No matter where your company falls on the supply-chain maturity curve, Supply Chain Reinvention can help you become a leader. We've partnered with more than half of the companies deemed to have “Top 25” supply chains (as ranked by Gartner) on key supply chain issues. And, we have helped companies in many different industries:

  • Conquer capacity constraints
  • Overcome margin pressure
  • Embrace the latest digital technologies
  • And fully align their supply chain capabilities with their strategic ambition.

Why think in terms of reinvention? Because incremental improvements are no longer enough. The journey from suppliers at one end to customers at the other has many steps, and along the way there are any number of places where mis­takes, delays, unnecessary costs, inefficiency, poor communication and missed opportunities can creep in. So it’s not surprising that most companies have supply chains that underperform, typi­cally leaving 5 to 10 percentage points in potential gross margin gains—and often more—unrealized.  

 We provide the right mix of planning, technical expertise, specialized tools and ongoing engagement to bridge the gap between strategy and design, and ensure that your supply chain reaches its full, unconstrained potential.

Read about more about our approach to Supply Chain Reinvention.

Companies often find themselves constrained by a complex manufacturing network. Assets, spin-offs and siloed investments are a common cause, as is the tendency to build expensive new plants to meet demand for a high-margin product. Complex regulations can pose a challenge, while asset- or plant-level throughput initiatives often fail to take into account the impact on the broader supply chain or manufacturing network.

The results can be devastating:

  • Poor service levels
  • Declines in perfect order rates
  • Low asset utilization
  • Skewed capacity-to-demand ratios
  • Frequent disruptions
  • Slow or expensive logistics

We can help you redesign your networks using a proven, repeatable approach that begins with a detailed assessment of the current state, an analysis of future demand and a definition of what full potential can look like.

From there we establish design principles and define service levels, use unconstrained thinking to envision an optimum future state, and launch an iterative process that strikes the right balance between actionable scenarios and the capital investments needed to achieve them.

Our approach generates impressive results that span Capex and gross margin improvements, shrink and logistics cost reductions, and significant improvements to service levels, inventory turns, customer satisfaction, and more.

We believe there are three essential building blocks to sales and operations planning (S&OP):

It should begin with strategic translation, to make sure that your top business priorities inform the choices you make about your network and operational parameters. 

It should integrate with your demand and supply planning.

And, it should rely on metrics, root-cause diagnostics, feedback loops, and a variety of other tools and data sources to support continuous improvement.

Our S&OP consulting expertise builds on those three elements by creating coordinated, cross-functional teams; applying clear governance and decision rights; integrating plans; connecting data systems; and developing the capability to identify the root causes of any problems or sources of underperformance.

Our clients have boosted revenue by as much as 8%, due to their increased ability to meet demand. Improved customer service levels pave the way for better pricing. Inventory declines by as much as 25%, thanks to superior planning capabilities. Lower operating costs lead to an EBITDA margin improvement of as much as 3 p.p. Forecast accuracy improves by up to 30%. And on-time delivery improves by as much as 15% because they have the right inventory in the right place at the right time.  

Every supply chain has an “efficient frontier” that defines the trade-off between service level performance and inventory levels. Most companies don’t get as close to that frontier as they could, opting instead to carry too much inventory and pay the price in diminished service level performance.

There are a number of reasons for this, ranging from the use of incorrect safety stock algorithms to SKU complexity to lack of ownership of metrics to ineffective promotions, and many more.

We work with companies to optimize inventory management, first by getting you closer to the current efficiency frontier and then by helping you “shift the curve,” to achieve step-change improvements in inventory efficiency. We help you address multiple facets of your supply chain design and operations, including planning, purchasing, manufacturing, distribution, product portfolio and your manufacturing network. We also work with you to integrate digital capabilities across your supply chain.

We've helped companies in retail, advanced manufacturing, consumer products, energy & natural resources, healthcare and many other industries reduce non-seasonal inventories by 25%, improve the inventory-to-sales ratio by 4%-5%, and achieve total shrink reduction of 15%, to cite just a few results.

Becoming a leader in transportation and logistics requires finding the right balance between cost, investment and service levels based on segment need.

We help companies do that through an approach that includes three major elements.

  1. Strategy translation: Determine optimal service levels based on customer needs and your overall strategy for customer service and logistics.
  2. Network optimization: Evaluate resource sharing across units, and make critical decision about whether and what to own versus outsourcing to a 3PL.
  3. Customer service and logistics excellence: Optimize the order-to-cash process and the warehousing and transport components of your logistics operations.

We also inject state-of-the-art digitization and automation technologies wherever they produce value, and help your teams acquire the capabilities they need to support continuous improvement. The result: Logistics costs decline 10% to 25%, on-time and in-full deliveries improve to >95%, and Capex on transport and warehousing infrastructure declines.  

Our supply chain expertise is supported by a number of complementary capabilities that ensure you get teh best results possible.

We embed the right digital technologies at key points along the supply chain. Smart automation, for example, can help you accelerate your operational processes while increasing flexibility and the ability to customize. End-to-end visibility and collaboration, including with 3PLs, can boost responsiveness, improve operational planning, and facilitate superior tracing of products and input materials. Advanced R&D management, planning and forecasting capabilities and a host of tools and technologies that make employees more productive are also important parts of our digital portfolio.

We'll help you address essential organizational elements of an effective supply chain, including what level of centralization makes sense and what forms of decision-making, governance and related ways of working will ensure that your supply chain meets its full potential.

Sustainability is also critically important. We can help you define your sustainability ambition and make a strong business case for sustainability, one that addresses cost reduction, commercial opportunity, risk mitigation, recruitment, or some combination of all four. 

We take a customer-centric approach, helping companies create a supply chain strategy that’s tied to your overall corporate strategy.

Client Results

Client Results

With experience across more than 1,600 projects, our clients consistently achieve 5-10 points of margin increase along with improvement in strategic KPI’s that add immediate enterprise value:

Supply Chain Resilience During a Crisis

The lessons of Covid-19 are proving invaluable as disruption becomes the new normal.

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We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results