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Value Chain Optimization

Global value chains, stretching across organizational boundaries to include tier 1 and 2 suppliers, are fraught with tension. On the one hand, the increasingly sophisticated use of operational data offers opportunities for greater control by allowing an organization to drill down and remove inefficiencies where and when they happen in the value chain. On the other hand, the focus on tactical operational improvements often obscures or even creates inefficiencies at the regional or global level. Like a proverbial iceberg, these regional or global inefficiencies are largely hidden from view, lurking in grey areas between supply partners and functional or regional responsibilities. Despite the obvious benefit of more traditional focused and disciplined supply chain improvement projects, it is precisely the interconnections between these value chain segments that offer far more return for time invested in terms of lower costs, increased flexibility and improved service levels. 

The A.T. Kearney Procurement and Analytic Solutions approach to value chain sourcing offers companies a nuanced, global and data intensive approach to improve their value chains. The approach centers on 5 fundamental efforts:
  • Developing a global end to end value chain model that identifies actual versus desired versus required chain performance
  • Understanding true total costs; combining logistics, procurement and operational elements
  • Simulating potential performance improvement opportunities using advanced analytic techniques
  • Aligning contract terms and service/performance requirements based on a more rigorous analysis of capabilities and interests across all value chain partners
  • Optimizing logistics and supply chain contracts across all modes simultaneously to maximize leverage and best meet enterprise-wide needs   
  • Creates true end to end value chain visibility, combining aspects of manufacturing, logistics and distribution
  • Uncovers opportunities to gain efficiencies in the handoffs between procurement, logistics and regional functional leadership
  • Optimizes inventory positioning, reducing obsolescence and import duties
  • Increases value chain flexibility by better balancing push and pull demands
  • Drives significant bottom line cost savings by maximizing global and regional leverage
What makes the A.T. Kearney PAS approach different?
  • A global network of experienced consultants provide in  depth regional knowledge
  • Experience across all modes of procurement, transport and logistics
  • Advanced analytics practitioners provide requisite rigor and detail
  • Collaborative Optimization approach generates incremental bottom line impact

 
  value chain optimization
 
   
 
related links
value chain optimization webinar
(coming soon)

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