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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.

"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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