The Backbone Of Enterprises
Realign your supply chain with your market demand
WHAT ARE SUPPLY CHAIN NETWORKS?
Supply chains are networks. Complex by nature, they are subject to uncertainties. Not a day passes without surprises and dozens of problems to resolve: a contract to discuss, a lost vehicle, a shut down at the plant, last minute order cancellation, a supplier that missed an important delivery, a hiring to make... In this context, rare are the occasions to rethink, to take a step back and get the bigger picture, to reconnect the dots and debunk myths and false perceptions. To put the solid facts & figures on the table and restart from there. It's extremely? difficult to get a decent end-to-end view of what's going on in a supply chain network. And even more difficult to find better ways to operate the end-to-end system. We make it possible.
Trade-offs are everywhere in the supply chain. The challenge lies in the performance measures being in different units, so preventing trade-offs to be explored by comparing alternatives apple-to-apple. At CEL, we measure supply chain KPIs and translate them into key financial measures of Sales, Profit, and Working Capital. Scenarios become much easier to assess and compare, allowing the Sales & Marketing, Finance and Supply Chain VPs to find a consensus on a neutral and factual basis.
What if we merge 2 facilities?
What if we open a new distribution center?
What if we use sea-freight instead of trucking?
What if we delist products with lowest contributions?
What if we change our sourcing to different suppliers?
What if we outsource part of our production?
What if we change our MOQ?
What if we improve our last mile deliveries?
What if we improve our inventory management?
There are no good business decisions without a precise and holistic view of Demand, Supply and Finance. Yet, so many interdependencies exist in supply chains that it is not realistic to count on MS Excel or a BI tool to help.
To support strategic or tactical decisions accurately you need advanced modelling, solid consultants, and decent data. Cost inefficiencies, revenue and margin losses, excess working capital come greatly from poor design of the network configuration and dynamics. We take the following approach to design and optimise networks.
FROM MODEL TO SCENARIOS
Now we have a trustworthy model of your current network, it's time to look into the future. It's time to ask questions, to test ideas, to assess hypotheses, to evaluate potential solutions. There is no limit to what can be done with an accurate model.
Demand is projected ahead with the growth assumptions agreed with Sales & Marketing teams. This projected demand is broken down and is fed into the supply chain model to highlight misalignment and capacity constraints. Thanks to simulation and exchanges with your team we assess precisely what capacity will be required to ensure serving the future demand, what policies would allow the highest service level for the lowest inventory, what transport solution would support the lowest cost-to-serve... Hundreds of scenarios are compared, discussed, selected, eliminated, assembled together until we come out with a realistic yet ambitious representation of what the future network should be and have a precise evaluation of what can be expected from a financial standpoint.
FROM DATA TO MODEL
From data we extract the substance and create a dynamic model. It helps to answer important supply chain questions very precisely. Demand as an input, P&L and Cashflow as an output.
A digital replica of your value chain, a Virtual Twin of your industrial and logistics network that translates physical flows into cost, cash and CO2.
FROM SCENARIOS TO ROADMAP
Once scenarios have been assembled to a final representation of the future configuration, the future P&L and investment requirements are formalized and validated by the Leadership team. It's now time to plan the transition from current to future. We sit with your team and review what are the main activities, investments, resources needs to transform your supply chain into its future set up.
What part of your Supply Chain do you want to redesign?