Supply chain value driver | Top three differentiating practices |
Maximum delivery performance | 1. Collaboration with key customers on planning (e.g. effective forecasting) 2. End-to-end supply chain planning and visibilty 3. Vendor-managed-inventory direct-replenishment model |
Minimised costs | 1. Best-cost country sourcing 2. Differentiated order-to-delivery time 3. Differentiated service level, including potential reduction |
Maximum volume flexibilty | 1. Internal capacity flexibility 80% - 120% 2. Flexible shift models/payment structure 3. Regional supply chain set-up |
Minimised risks | 1. Multiplication of sources and sole-sourcing avoidance 2. Regular review of suppliers’ financial risk and mitigation through risk-sharing partnerships 3. Visibilty and regular monitoring of main suppliers’ operational indicators |
Complexity management | 1. Development of multi skilled employees to cope with complexity 2. Late-stage product customisation 3. Use of distributors and other channel partners |
Sustainability | 1. Agreement with supply chain partners to adhere to highest ethical standards 2. Responsible supply chain partner footprint and procurement framework 3. Internal carbon footprint optimization and improvement |
Tax optimisation and efficiency | 1. Manufacturing and assembly optimization (toll manufacturing) 2. Localisation of inventory ownership in tax-efficient countries 3. Localisation of procurement organisation in tax-efficient countries (e.g. Singapore, Switzerland) |