Production and supply chain excellence

WHY THIS MATTERS

In many industries, globalised manufacturing processes, rising customer expectations regarding production and delivery flexibility, and new opportunities resulting from IT innovation are a reflection of increasing competitive pressures. Against this backdrop, production and supply chain management has the important role of delivering the right product at the right time at the right place and at the lowest cost.

CHALLENGES

The greatest challenge in managing production networks and supply chains lies in coordinating the many parties involved, both within the company and outside of it. Internally, the flow of goods has to be coordinated across functions, from procurement via production through to distribution. Externally, a global network of suppliers, transport routes and distribution channels has to be integrated to serve customers exactly according to their needs.

KEY QUESTIONS

We take a holistic view of production and supply chain management. In our consulting projects we identify challenges in three fundamental activity areas:

1. Strategic orientation

How should the interaction between various production units be coordinated along the entire supply chain? How can networks and capacities be managed consistently when production capacity is spread across various sites, with various parts being complementary or substitutable? Where should complementary or redundant capacity be established – and where should capacity be reduced? How can synergies continually be realised, even when production units are predominantly self-sufficient or supply chains independent?
Which vertical range of manufacture should be sought for the individual sub-areas? What are the advantages and drawbacks of strategies such as outsourcing, integrating third parties as an extended workbench, using system suppliers or in-house production, both quantitatively and qualitatively?
Which risk elements should be taken into consideration when designing the supplier network? Is it necessary to have redundancies in the supplier relationships to secure supply or do cost pressures mean volumes should be aggregated by supplier to generate economies of scale?

2. Performance management

What is the best design for the planning process when taking into account costs and benefits? Are planning processes harmonised with product life cycles? When market conditions are volatile, are simulations and scenarios used to manage production and supply chain capacities better?
How much cost transparency is required and which contribution margin analysis is best suited to managing the process? Is a complete, multi-stage allocation of secondary costs necessary and are the allocation bases appropriate?
Which production and supply chain KPIs are relevant for management? How are these depicted in reporting?

3. Operational management

How can the impact of volatile demand be minimised from a business perspective?
Is the incentive system consistent across functions and does it allow everybody to pull in the same direction? Are service level agreements (SLAs) in place that appropriately manage interfaces and responsibilities between sales, supply chain and production?
Are suitable planning concepts and tools being used and are the right staff available to implement optimum production and inventory planning?

OUR OFFERING

CTcon will help you manage your production and supply chain, from designing and assessing strategies through to integrating operational measures into the management concept. Applying our specialised expertise in corporate management and restructuring, in conjunction with a goal-oriented change management approach, we work with you to set up sustainable and integrative production and supply chain management in your company.

Your contact person

Dr Christian Bungenstock
Partner | Düsseldorf | Germany

Get in touch

Privacy |Imprint |