In order to capitalise on marketplace, successful global supply chains will evolve rapidly with decisions being taken quickly. At the same time they are surrounded by ambiguity concerning logistics costs, service levels, order quantities, inventory amounts, network design, transport modes, manufacturing locations, outsourcing decisions and offshoring strategies, to name just a few of the dynamics at play.
PA Consulting Group's experience in optimising global companies' supply chains confirms two complementary strategies:
Deploying global centres of excellence - functional activities that are typically duplicated across the organisation (such as transportation, purchasing and forecasting) are centralised and standardised, thereby benefitting from cost optimisation, economies of scale and global synergies.
Delivering dynamic execution at regional and local levels - using third and fourth party logistics providers and flexible outsourcing and nearshoring contracts together with variable manufacturing processes, will ensure the supply chain can rapidly scale-up and down as local demand changes.
PA helps consumer goods and industrial engineering companies implement new global supply chain operating models to become more adaptable. Modelling tools ensure the supply chain dynamics and market scenarios are understood - the issues in scope were labour cost, transport and raw material cost and technology trends, demand, supply, production and distribution network.
To find out more on how adaptable supply chains will deliver competitive advantage, please contact us now.