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Value Proposition
Fundamentally, the value proposition for strategic
supply chain design is simple: supply chain design projects identify
valuable opportunities and savings many times greater than the cost of a
project. Most companies have a large untapped potential to improve their
supply chains because they do not review their supply chain designs
frequently enough.
It has not been easy for companies to get to grips
with understanding the key drivers and trade-offs in their supply
chains, despite the increasing amounts of management information
available. Strategic supply chain design is the best place to start to
get an overall view of the status and potential opportunities available.
Because supply chain design can operate at different
levels of data aggregation, it can be used to support a strategic road
map for the supply chain. Companies can use high-level modelling and
analytics to identify the best areas of opportunity before proceeding to
more detailed projects to identify specific actions.
Strategic supply chain design is obviously not the
whole solution; there are many other factors in delivering a competitive
position and operating an efficient supply chain. But supply chain
design puts things into perspective, and identifies opportunities for
specific action; it provides a clear context for strategic choices and
priorities.
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"Companies with effective supply chain management incur
lower costs than their competitors, sometimes by as much as 7 percent."
-- Operations Management Roundtable, Supply Chain Executive Board
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