Supply Chain Management

Shorter cycles of innovation, more sophisticated products, increasing value added steps and even further progressing globalization, combined with the corresponding opportunities and risks: Supply chain management claims to fully master this complexity. 

Companies pursuing a supply chain strategy differentiate themselves from the competition. They are able to anticipate newly developing market opportunities, detect market risks early on and react more flexibly to changes. These companies are not unprepared when they meet the unexpected because they have access to different action scenarios. They are dealing in depth with their markets, their suppliers and the suppliers' processes and – on the basis of findings gained – they will cultivate their brand and product image. They are able to offer comparable products and services at lower costs and thus ensure a long-term expansion of market shares.

Supply Chain Strategy

The supply chain strategy consistently follows the business strategy and defines the basic orientation for the design of processes, the organization and IT systems. In this respect, critical considerations will reach from client to supplier and have the objective of doing justice to both current and future requirements.

Exemplary project contents:

  • Definition and implementation of supply chain strategies
  • Definition and implementation of organizational and process models
  • Implementation of supply chain potential analyses

Supply Chain Organization

In an expanded view, functional organizational structures quickly reach their limits of effectiveness. Although they might be even plausible in a company's internal perspective, they will no longer be able to come up, however, to the consistent orientation towards customer requirements. The collaboration in intensive supplier and logistics partnerships requires a much larger horizon and has to meet other work contents and objectives than those to be expected from a "classical" purchasing organization.

Exemplary project contents:

  • Definition and introduction of a process-oriented operational organization
  • Derivation and introduction of the required structural organization
  • Training and continuing education of those involved (training on the job)
  • Supporting organizational change by means of change management

Supply Chain Processes

All processes are aligned based on the use of all goods flows using resources optimally (raw materials, semi-finished and finished products). From the supplier's added value – they sub-supply themselves at times – along the entire supply chain, via value added processes in-house, all the way to the customer. At a high level of detail, each individual process will be broken down, defined, reviewed and introduced. Comprehensive coordination, examination and quality assurance processes are ensured for efficient process control.

Exemplary project contents:

  • Introduction and optimization of end-to-end processes
  • Integration of interdisciplinary planning and coordination processes
  • Resource-optimized balancing of different internal needs

Supply Chain Planning

The basics of an alert and flexible supply chain are planning and its strict implementation. Across company boundaries, uniform requirements are to be set up and consolidated for distribution, production, warehousing, procurement and logistics planning. The relevant planning parameters for suppliers and customers are to be identified, and data transfer into the respective EDP systems is to be ensured in order to use the best possible IT support for efficient processes – internally, across departments and/or company-wide and in collaboration with customers and suppliers.

Exemplary project contents:

  • Introduction of Sales, Inventory & Operations Planning (SI&OP)
  • Sales & demand planning
  • Supply planning
  • Inventory planning
  • (Multi-site) production planning
  • Transportation planning

Working Capital Management

Many companies still largely neglect the negative effects of an excessively high amount of tied-up capital in their current assets or net working capital – or such effects are even simply unknown. If inventories and receivables increase, liquidity will be reduced, and margins of investments will thus be lost. Statistics demonstrate that the amount of outstanding receivables and the inventory ranges are at record levels in Germany. There are also potentials in the use of payment terms (liabilities). Working capital management makes a contribution in order to improve the business result and to increase resistance against crises.

Exemplary project contents:

  • Working capital optimization
  • Inventory optimization
  • Strategic network planning

Supply Chain Controlling

Due to its complexity, an added value supply chain requires individual control. An adequate instrument in this respect is a business ratio system which is adjusted to the various company needs, demands and objectives. It is used for the operationalization of the intended strategy orientation and acts as a holistic control system which can be reduced to various aggregation levels. The successful control of complex value chains requires a holistic view and consideration of not only all corporate divisions and companies but also of all suppliers and customers. Existing interfaces are to be identified, designed controllably and to be embedded in the corporate network in a demand specific manner.

Exemplary project contents:

  • Derivation of target-specific measures for the operationalization of the corporate strategy
  • Definition of adequate business ratios
  • Implementation of business ratio systems into the existing corporate systems
  • Introduction of a meaningful ratio system

Logistics and Distribution

Important parts of the supply chain costs are those for transportation and warehousing. Increased costs due to higher energy demands and worldwide logistics are to be faced and countered. Companies reaching best values here will be strengthening their competitiveness in a sustained manner.

Exemplary project contents:

  • Strategic network planning
  • Transport costs optimization
  • Warehouse optimization

Kerkhoff Consulting GmbH – +49 211 6218061-0 – Elisabethstr. 5 – 40217 Dusseldorf - Germany
Kerkhoff Consulting GmbH – +43 153 2272941 – Wallnerstr. 3 – 1010 Vienna - Austria