Companies face many challenges in their supply chain,
particularly increasing variability, both at the
source and delivery side. Moreover, complexity is
rising because of shorter product life cycles in a
global network context. Extra inventory and excess
capacity are “quick fix” solutions but are at the same
time driving the high “cash to serve”. Because of
rising demands combined with price pressure, a
major challenge for any organisation is the “cost to
serve”.
The solution will be found by looking at the supply
chain from a wider business perspective.
Axios has the expertise, the tools and the experience
to determine your supply chain strategy in line with
your business strategy and performance objectives. We
will work together to determine clear strategic supply
chain objectives and best practices. This will
include:
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Network Design – to propose and implement a
network optimization that allows you to deliver more
cost efficiency while meeting the delivery service
objectives. |
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Supply Chain Planning Strategy and Policy
Methodology - to balance net asset requirements and
cost efficiency with service objectives.
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Cost to Serve Approach – to reveal the true cost
of service and complexity. It will be your first eye
opener toward profitability optimization.
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Product Portfolio Management and Customer
Segmentation - to keep control of the cost and cash
to serve while meeting your market ambitions. |
Integrated and performing supply chain processes
are your roadmap to sustain your supply chain strategy
in the longer term. Our supply chain process and
support will guide you in this transformation process.
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Case Study
The Client
A UK subsidiary of a FTSE 100 producer of building
materials
The Challenge
Having grown through acquisitions, variations in
customs and practices across regions were leading to
ineffective operations; regions were managed
autonomously leading to a large disparity in costs,
customer service and management practices. The senior
management needed to transform the business with cost
reductions and customer service improvements.
The Solution
Using industry knowledge and change management
expertise the total customer experience from order
capture through delivery to payment was process
mapped. Working closely with the operations teams, new
best practice processes were designed and implemented.
Operational performance levels were monitored through
a series of effective KPI’s designed and implemented
by the joint team. An implementation plan with new
customer focused practices was rolled out throughout
selected business areas and a new process for routine
scheduling was implemented across key regions.
The Results
8% reduction in distribution costs, 20% reduction
in environmental impact, 25% improvement in customer
service.
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