Supply Chain Strategy / Business Model Transformation


Companies can create a competitive advantage with the right supply chain strategy, structure and processes that are responsive and cost efficient to meet changing customer requirements.  With increasing cost pressure, the advance of supplier and competitor capabilities, and technological development, a company’s supply chain strategy and business model may need to be repositioned and modified to become more competitive.

Different supply chain strategies and business models may include:

Manufacturing strategy: Build-to-stock vs. make-to-order, full configuration vs. postponement
Distribution strategy: consolidated vs. fragmented, customer segmentation
Centralize vs. decentralize management and operations
Single vs. multiple sourcing
Supply chain design vs. product design

Business Problem

Are you experiencing these business challenges?  Do these questions sound familiar?

Common Business Challenges

Multi-echelon, fragmented distribution network
Lack of agility and adaptability; Slow to compete for on-demand services
High fixed and variable cost structure to maintain competitive service levels
Lost economies of scale
Disparate IT systems and processes; no common integrated, technology platform
Requirement to customize goods and services to diverse customer needs
Supply chain design and capabilities limit modular product design or product development and design limit supply chain design and execution
Unable to decouple process from a supplier

Key Questions for Consideration

How do we create value through our supply chain?  
How can we develop our supply chain to become more responsive to customer demand?  Do we have the right structure, technology and processes?
How and where can postponement or late-point deployment be utilized?
How can we leverage economies of scale and increase flexibility in distribution?
Are we treating all customers the same?  How are we segmenting services to match customer requirements?
Do our outsourcing providers have the capabilities and willingness to support a change in supply chain
What technology and processes are required to support a shift in strategy?   
What is the risk?  Is it shared risk?  How do we mitigate the risk?

Service Solution

Supply Chain Acuity’s Supply Chain Strategy and Business Model Transformation service helps our client determine the appropriate sourcing, manufacturing and distribution strategy to gain a competitive advantage.  We develop a business case and quantify the impact of changing business models to support the new strategy.  As needed, we help implement the transition plan from start-up to steady-state.

Delivered Benefits and Desired Outcomes

Develop and transition to a more competitive business model positioned for future growth and profitability, increased asset utilization, and stronger capabilities for a sustainable competitive advantage
Agility – rapid response to changing business conditions
Alignment – supply chain partner goals and operations in agreement; internal and external boundaries removed
Increased revenue growth 
Reduced operations cost, working capital and time-to-market
Leveraged economies of scale and scope
Risk prevention and mitigation