Defining a clear supply chain strategy

Defining a clear supply chain strategy for each business unit, so it can serve as a key driver and input for defining the optimal supply chain footprint going forward.

Assignment

A power tool manufacturing company wanted to define a clear supply chain strategy for each business unit, so it can serve as a key driver and input for defining the optimal supply chain footprint going forward, and also enable all functional strategies to be aligned to this overall supply chain strategy.

Project summary

The company headquartered in Europe produces innovative tools that are used by construction industry professionals worldwide. As part of its ambition to grow, the company wanted to conduct a comprehensive assessment of it's current supply chain set up and to define a roadmap for optimization of its future network, with key focus on Europe first. However, before embarking on a typical network design study for the European market to answer what would be the optimal footprint, the company realized there was no internal alignment yet on the supply chain strategy (for example some leaders preferred agile, while other leaders focused on efficient).

Our approach

BCI approach consisted of:

Understanding of the current supply chain

  • Mapping of the current supply chain
  • Identification of short-term improvement options (low hanging fruit)
  • Assessment of basic scenarios for the longer term in terms of costs, service levels, risk, implementation complexity, etc.

Strategy workshop

Bring together the results of BCI’s analysis of the current supply chain, BCI’s industry & supply chain expertise and clients knowledge in order to:

  • Review the current set-up and identify short-term improvement options
  • Review the scenarios analyzed and discuss about potential alternative scenarios (based on industry best practices shared by BCI)
  • Agree on the right supply chain strategy going forward
  • Agree on a roadmap for next steps towards supply chain network optimization

Wrap up- and action plan

  • Document the outcomes of the strategy workshop in order to come to a more detailed action agenda for client's European supply chain

Result

  • Mapping of current As-Is supply chain, including strengths and weaknesses
  • Overview of industry best practices and case studies of competitors
  • Trends in supply chain networks in Europe
  • Definition of the right supply chain strategy, given the business environment, overall company strategy and own strengths & weaknesses
  • Discussion on suggested alternative scenarios for future supply chain networks
  • Prioritized list of improvement opportunities (improvement planning)