There is a growing consensus among experts on the subject: ERP and M&A programs, which imply corporate transformations of The big impact, are a thing of the past, as they do not always offer competitive advantages to the companies that adopt them. “Most agree that these management programs have often failed to achieve their objectives,” reinforces Simon Knowles, head of the Marketing Department at the consulting firm Maine Pointe.
But if the challenge is to maintain and improve competitiveness, Knowles advocates a pragmatic approach to harnessing the untapped potential of the supply chain. supplies companies and turn it into a competitive weapon. After all, he says, using the maxim of Creighton Williams Abrams Jr., general of the US Army, it is only possible to eat an elephant “one bite at a time”. In other words: “when you are faced with something big and difficult, break it down carefully into pieces, take ‘manageable bites’”, translates the consultant.
Knowles understands that CEOs and supply chain leaders need to be focused on the ultimate goal of achieving what he calls Total Value Optimization. But to do so, he asks, how should they respond to the relentless escalation of customer demand and its impact on the supply chain? And how should they respond to the growing competition and disruptive business models that are threatening their competitive position, profitability, and very existence?
Simon Knowles recently published a step-by-step guide to help you better understand what he means by addressing these issues. In addition to a pragmatic approach to the issues, he recommends:
– Know where you are now and start your journey by keeping your goals in sight. A quick way to do this, he explains, “is to use a self-assessment tool to see how your company compares to other organizations.”
– Analyze all functions to identify barriers and opportunities. Knowles reminds us that supply chain and operations transformation cannot be in functional isolation. “Executives at a global packaging company overcame significant challenges related to metrics and management operations. The results achieved transformed the business’s finances by generating a 56% improvement in EBITDA.”
– Find a rhythm that works for your company. After identifying operational barriers and new opportunities to create value, the next step, the consultant says, is for CEOs to work to identify a coordinated set of time-based and rhythm-based commitments that are right for their business. “Each engagement should deliver measurable and trackable financial benefits that help procurement, logistics and operations teams break down functional silos and improve EBITDA and cash performance.”
Pig iron: http://www.mainepointe.com/practical-insights/step-by-step-supply-chain-transformation
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