Demand & Supply Strategy
Build your company a Strategic Foundation
CEL Strategy service helps to transform long-term financial objectives into a future demand landscape that ensures achieving revenue growth and future supply network that ensures cost efficiency.
Often in strategy the following question is only vaguely answered: who and where will be our future customers? How much they'll buy from us, of which product?
To address this we engage with your sales & marketing team to define, formalise, locate your current customer base together with creating a market demand model. This model integrates demographics, econometrics, competitors, and other relevant data from surveys or research. The demand model is dynamic so it extrapolate the future market evolution over time.
Looking at the market demand and your current presence through a geographical view allows to easily identify white spaces, were market demand might be easiest and most profitable to capture. It then allows growth strategy discussions to be fueled by facts and figures. Growth scenarios are quantified allowing to project how much extra revenue can be expected from various areas and customer segments.
Once the future demand landscape is defined, it's time to think of the supply side. How will we reach these future customers optimally?
Here comes the supply chain strategy side of the work. The idea here is to design a distribution, manufacturing and sourcing network that maximises the chance of serving the future demand (high product availability) while making sure cost-to-serve is as low as possible. In other terms, looking 2-3 years ahead how the current physical supply chain needs to be designed and operated so it balances service level, cost and inventory. The big questions relates to where should be our facilities, our distributors, our suppliers so it ensures the efficient serving of the demand.
Together with your supply chain team, we create a simulation model of your current supply chain and then start to close, open, connect, disconnect, expand, shrink your network facilities. We test various delivery strategies (modes of transport, vehicle size, frequency...) and assess what level of inventory would be needed. We also assess make or buy strategies assessing outsourced vs. insourced logistics operations. Hundreds of different scenarios are simulated, quantified, challenged, confronted to reality check, so the final network design offers a clear financial benefit while being realistic and feasible. Risks are also simulated to identify ways to cope with potential disruptions that could undermine the business results.
The outcome is a picture of what the future supply chain should look like, what capacity will it be required, and what CAPEX it would needed to transform your current network.
With a solid view a your future demand, a clear picture of your future network, it's now time to plan.
Strategic Planning comes as a final stage of the effort. It requires the leadership team to be involved so the sequence of actions, investment and resource required is discussed, debated and formalised in a way all key functions (i.e. Finance, Sales & Marketing, Supply Chain) are fully aligned with a single clear roadmap.
This is how we typically help companies to strategise. Bullet proof methodology, advanced analytics, scenario assessment, cross-functional engagement help to align everyone in the organisation toward a vision of what the future should look like to ensure success.