Supply Chain Management Strategy

• Development of company-specific SCM strategies
• Design of optimal SCM organisational structures at both local and global levels, and their integration with logistics, production and procurement
• Design and optimisation of production and distribution networks (local and global footprint)
• Definition of value creation strategies within the production network
• Determination of suitable production and configuration strategies for specific product groups (Build-to-Order, Assemble-to-Order, Pack-to-Order, etc.)
• Development of postponement strategies
• Definition of appropriate strategies for production and assembly planning (e.g. capacity allocation and planning, synchronisation of pre-assembly and final assembly, introduction of flexible working time models)
• Development and implementation of integrated concepts for demand and replenishment planning (S&OP, SIOP)
• Definition of suitable procurement strategies for different material groups (Single Sourcing, Multi Sourcing, Local Sourcing, Global Sourcing)
• Execution of make-or-buy analyses for logistics, production and assembly services
• Determination of technology usage and degree of digitalisation (e.g. ERP, WMS, AI-supported systems, Big Data)
• Strategy evaluation for the continuous development of SCM alignment
• Shared logistics services through a central SCM organisation within the company
• Development of appropriate KPI systems for measuring and evaluating supply chain activities (e.g. SCM Balanced Scorecard)

When developing a supply chain strategy, companies encounter many challenges. As a supply chain management consultancy, we support you with our experience and best practices to identify and overcome these challenges at an early stage.

Our Approach:

1. Assessment of your current supply chain

Before you begin developing a new SCM strategy, it is essential to conduct a thorough assessment of your existing supply chain. This includes a critical review of current processes (planning, control, material flow), identification of bottlenecks, and analysis of performance indicators. Key performance indicators (KPIs) such as delivery service / OTIF, lead times, and inventory turnover can provide valuable insights into areas requiring improvement.

2. Identification of goals and objectives

After assessing your current supply chain and supply chain management situation, the next step is to set clear goals for your SCM strategy. These should be aligned with your overall business objectives and might include, for example, the following points:

• Reducing lead times by a specific percentage
• Achieving a certain level of inventory turnover
• Increasing customer satisfaction through improved delivery service
• By setting measurable goals, you can track the success of your SCM strategy over time

3. Development of a company-specific SCM strategy

Starting from the corporate strategy and the defined objectives for Supply Chain Management (SCM) in terms of time, cost, and quality, the SCM strategy – including its key elements – must be defined. Depending on the industry and company orientation, these key elements typically include the design of the global production and distribution network (footprint), the decision between centralised and decentralised structures, the allocation of products to specific plants, the definition of the degree of vertical integration at production sites, the implementation of production decoupling strategies (postponement), overarching planning and control concepts, supply and replenishment strategies, make-or-buy decisions for components and services, the sustainability strategy, and the required SCM organisational structure.

These elements largely determine the level of agility, lean management, flexibility, and speed within the supply chain – and thus its contribution to achieving overall corporate objectives.

4. Implementation of your SCM Strategy

A clear understanding of the key elements of your future SCM strategy is essential. For successful implementation, a roadmap outlining the necessary steps to achieve your goals is required, including a timeline, responsibilities, and required resources. Be sure to include checkpoints to assess progress and make necessary adjustments. Involving various stakeholders within the company is also crucial for the success of a well-executed SCM strategy. The integration of supporting IT systems, such as ERP, APS, TMS, and Supply Chain Analytics, is usually indispensable and should be implemented according to your specific requirements.

• Establishing a sustainable foundation for achieving corporate objectives
• Increased delivery capability and reliability
• Improved transparency for all stakeholders within the company and throughout the supply chain
• Optimised costs and greater efficiency along the entire supply chain
• Greater flexibility and responsiveness
• Enhanced risk management
• Creating sustainable competitive advantages in the market