End-to-end supply chain optimization: improving performance holistically
End-to-end optimization of the supply chain is only possible if companies take a holistic view of their supply chains and networks. At FutureTech WorX in Berlin, partner Wilhelm Schreiner spoke about resilient supply chains under VUCA conditions, increasing customer satisfaction through on-time-in-full (OTIF) rates of more than 98 percent and self-sustaining growth in the company by shortening cycle times. A holistic approach to supply chain planning includes all relationships between suppliers and customers and the services to be provided over the entire product life cycle. Central topics for establishing a supply chain strategy are procurement, production & maintenance and logistics & sales.
More resilience for supply chains
When it comes to the resilience of supply chains, forward-looking planning decisions require a balance of risks. The “cash-cost-services” triangular relationship, i.e. the management of inventories, cost of goods sold (COGS) and the targeted service level for the customer, taking the margin into account, provides a basis here. Our resilience projects make supply chains more resilient in a two-stage approach. The aim of the first step is to realize quick wins through process reengineering, which is particularly important under time pressure and VUCA conditions. In the second phase, new processes and tools are then developed to permanently reduce inventories and fundamentally solve backlog problems.
Improve customer satisfaction
To increase customer satisfaction, all aspects of order processing are scrutinized. This begins with the quotation phase and continues from order preparation through the various phases of production to delivery to the customer and finally invoicing. Shorter throughput times, cost reduction and the reduction of inventories are the focus of OTIF projects. The main starting points for improvements are
- Streamlining of processes
- Automation
- Establishment of a shared services center
- Personnel development and coaching
- Personnel adjustment
All corporate functions involved in order processing are considered, clear roles are described, responsibilities are defined and processes are defined.
Self-sustaining growth through reduced cycle times
Self-sustaining growth means self-financing growth. Companies achieve this through order processing that stringently analyzes all sub-processes and improves their performance. Business KPIs are the concrete form of the company's economic goals. They result directly from the value drivers defined by the customer. These directly influence the return on capital employed (ROCE). One level below this are the indicators for the performance of the various processes in the company, which in turn depend on various influencing factors that exist both inside and outside the company.
