For many global brands, developing a fully integrated end-to-end supply chain is a key objective
Not surprising when it can boost revenue by 40% and reduce working capital by 30%!
With the advent of off-shoring and the evolution of omni-channel, the task of getting products to the customer increasingly involves coordinating a multi-tier global network of upstream and downstream participants that require control, proactive management, with the ever-present risk of disruption.
As supply chains have become more demanding, fragmented and dispersed, network integration has become an increasingly difficult task.
Mapping the total end-to-end supply chain critical path, encompassing all processes and participants, is critical in understanding and reconfiguring these increasingly complex networks.
Better configuration in end-to-end supply chains can help brands forge ahead of competitors but the advantage can be short-lived, if they don’t revisit and revise continually.
So how should you approach the challenge of end-to-end transformation?
What does the process encompass?
And what are the benefits of successful adoption?
In order to achieve true end-to-end integration of processes and functions, companies need to think beyond their legacy supply chain.
In particular they must also consider the sales channels and customer exchange, with an eye toward filling in any service or process gaps that might emerge in presenting the product for sale.
The term “end-to-end” really means starting with the customer and working back through every step that’s crucial to the supply chain, including distribution, manufacturing and product development.
Measuring performance is essential to ensuring revenue and market-share growth.
Key metrics include vendor performance, freight management, fill rate and on-time delivery.
Analysts calculate that a true end-to-end perspective can boost earnings by between 20-40% and see working capital reductions of 20-30%. Compelling figures.
Putting those metrics into place can be challenging, because it requires the implementation of a solution that is continually aligning key performance indicators with the customer’s ever-changing requirements.
All trading companies will benefit from an end-to-end strategy and particularly those with large, disparate customer bases, a broad range of SKUs, long product life-cycles and any that need innovation.