Supply Chain Management

Through its direct influence on the service level, costs and net operating results, an effective supply chain is considered as the central gear for the improvement of competitive position.

 

Through a systematic optimization of the supply chain and its organization, all essential value drivers (transaction volume, costs, working capital, capital assets) are influenced. The goal of supply chain management is a market-driven supply chain performance (delivery time, delivery dependability, etc.) with minimal supply chain costs (process costs, carrying costs, etc.). These optimal operating points provide a maximum contribution to the increase of the company value. The knowledge and achievement of these operating points make a supply chain very efficient.

Globalization, Cost Pressure and Customer Requirements


The trends and drivers in supply chain management are not fundamentally new, but in particular, they have sharpened substantially over the last years:

 

  • Globalization of logistics
  • Growth alteration of the markets
  • Focusing on core competencies
  • Increasing cost and competition pressure
  • Development of information and communication systems
  • Increasing customer requirements for products and services
  • Strictest customer requirements for supply chain performance

The result is an increase in supply relationship complexity, combined with increasingly higher company and customer claims. These developments mean that logistics may no longer be limited to the traditional, physical logistics tasks (transportation and storage), but instead have to encompass the integrated organization of the flow of information, material and finances from the customer to the supplier and back to the customer.

 

Consequences and major optimisation tasks resulting from these described trends can be summarized as follows:

 

  • Strategic positioning in the network
  • Alignment of the supply chain with customer requirements
  • Mastery of the network complexity
  • Close collaboration or partnership with chosen suppliers and purchasers
  • New options for supply chain planning
  • Mastery of the product complexity along the supply chain


Knowledge

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Holistic Management Model


A holistic management model is able to focus on the strategic direction of impact and long-term success and the company's continuance as a going concern. More ...

Procurement Optimization


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