Supply Chain Strategy

Decisions on the structure of global value networks have long-term and far-reaching consequences for companies. They must therefore be based on a supply chain strategy that is supported by the corporate vision and derived from the corporate strategy. 

The supply chain strategy forms the basis for the medium to long-term orientation of the entire value chain and thus for securing competitiveness and minimizing inherent risks. It creates the conditions and the framework for operational supply chain management to achieve an optimal combination of delivery performance and delivery costs. At the same time, supply chains must remain lean, efficient and flexible in order to be able to react as quickly as possible to changes, trends and risks.  

It is essential to identify the relevant requirements at an early stage, analyze them systematically and integrate them into the supply chain strategy. Decisive factors here are current and future customer requirements, competition, technological innovations as well as geopolitical, legal, ecological and economic conditions.

In this context, sustainability requirements must also be taken into account. For example, efforts to decarbonise the supply chain lead to a continuous and systematic identification of economic sustainability risks. In some industries, a trend towards decentralisation of the supply chain and increased use of regionally produced components and services is emerging.

The specifications and requirements necessary for the operationalization of the strategy must be made. The following questions, among others, are to be answered:

  • How can customer requirements be defined and segmented? Which service levels are required?
  • Through which sales channels should the customers be reached?
  • Which locations and networks are chosen, what is their desired degree of autonomy?
  • What are the targets and metrics for the supply chain?
  • What is the optimal compromise between minimizing TLC/TCO and risk minimization?
  • What are the preferred sourcing strategies?
    • Single vs. multiple sourcing
    • In- vs. Outsourcing
    • Modular vs. Component Sourcing
    • Regional vs. Global Sourcing
  • What are other strategic parameters in the distribution?
    • Staggered distribution processes
    • Design of decoupling points
    • Preferred transport routes and modes of transport
    • Process design and the binding nature of process models
    • Principles of cooperation with external partners
  • To what extent is the supply chain strategy supported by the IT strategy?

Our consultants bring the expertise to develop a tailor-made supply chain strategy based on the individual framework and requirements together with our customers. A proven process model helps to manage this process in a stringent and goal-oriented manner, but it must be adapted to the specific requirements. Our services include in detail: 

  • Derivation of the aspects relevant for the design of the supply chain from the corporate strategy
  • Recording of current and future requirements for the supply chain
  • Formulation of market, competition and environment scenarios
  • Development of alternative supply chain strategies and evaluation on the basis of the formulated scenarios
  • Selection and detailing of the final supply chain strategy
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Case Study

Weaving success for China. In China, the label ‘Made in Germany’ stands for innovative power, quality and the high development skills of the manufacturers. This applies to vehicles and household appliances, but also to the textile machines on which garments from T-shirts to haute couture are created for the world market. But the security of their specialisation niche, from which textile machine manufacturers have benefited so far, is eroding.