Center of Excellence set up and roll out

Need for rolling-out support to a global supply chain vision.

Assignment

Our customer operates within a truly global, integrated and customer centric business environment.

In order to become a leading global MedTech company, an E2E supply chain transformation is to be formed to map, model and improve the company’s value chain network.

Project summary

A customer-centric, efficient, integrated and sustainable supply chain, needs a global supply chain vision adhering to 4 fundaments:

  • Customer: reliable order fulfilment, responsible for demand, agile reaction to changes
  • Efficiency: competitive global sc cost to serve, healthy global inventory levels, lean SC organization
  • Capability: E2E visibility through data and systems, integrated SC processes and organization, mature SC skills, global mindsets and culture
  • Sustainability: continuous improvement of the environmental footprint, social impact with clear target aspiration, compliance with rules & regulations

Our approach

Our customer was in need for rolling-out support to their global supply chain vision and the establishment of a strategic network management department. Activities:

  • Define future network strategy (in close alignment with the business and other business functions)
  • Optimize network footprint (manufacturing, warehouses) taking multiple factors into account, e.g. service lead time, cost, resilience, sustainability, geopolitical environment and systems roadmap.
  • Model network capacity and trade lanes (internal operations, Logistics Service Providers, Freight Forwarders, other suppliers)

We defined a roadmap to establish above within a 3 year time-frame

Starting:

  • Establish global supply chain network strategy and lay the foundation for network optimization capabilities
  • Develop the governance system, alignment with the network modeling scope and build partnerships with other business functions.
  • Design network within a specific pilot area, while building capabilities to do network modelling

Basic CoE set-up

  • Define CoE scope, organization, structure & RACI, operating model
  • Identify requirements for internal capabilities and training

Ramp-up CoE

  • Data & Information management
  • Tool selection for digital Twin
  • Capability enhancement for modelling

Result

  • A COE put in place with trained staff
  • Developed a model which optimizes for cost while accounting for service levels, resilience, sustainability and regulatory / global trade considerations are taken into account
  • Build an agile and resilient supply chain, by simulation within a digital twin based on business strategy, projected growth, potential risks for disruptions
  • A 10%+ costs reduction in the E2E Supply Chain