DECISIVE COMPETITIVE FACTOR: A STABLE SUPPLY CHAIN NETWORK
Global supply chains are currently being massively disrupted by ongoing pandemic challenges and the war in Ukraine.
Global supply chains have come under extreme pressure over the past two years. The ongoing Corona pandemic and the war in Ukraine are exacerbating existing tensions in supply chains. Congested border crossings, blocked routes, and shortages of energy and raw materials increase complexity and cost structures. Business interruptions due to a partial lack of skilled workers and Covid-related sick leave impair economic success. The current forecasts do not indicate any improvement in the near future.
Supply bottlenecks are currently a problem for a total of 77% of companies in the SME sector
Possible effects are, for example, increased delivery times, material shortages or sustained price increases.
Canan Jungel
Principal
Phone: +49 7024 8056 0
E-Mail: canan.jungel@staufen.ag
STAUFEN supports the stabilization of supply chains
The main task and central goal of supply chain network management (SCNM): to make the entire network and the cooperation between the individual network partners more responsive, robust and efficient and thus improve the performance of the network.
You can find all terms and explanations to our SCNM framework in our SCNM Glossary.
Impacts & Drivers
Carbon emission reduction / environmental policies / climate change / pressure from NGO’s / alternative energy sources
Population growth / age distribution / career attitudes / health consciousness / lifestyle / cultural barriers
government policy / political stability / corruption / foreign trade policy / tax policy / labor laws / trade restriction & barriers
Antitrust / discrimination / employment / consumer protection / health & safety / LkSG – Supply Chain Law / EU Directive Sustainability
Economic growth / exchange rates / interest rates / inflation / unemployment rates / disposable income / labor cost
Artificial intelligence – machine learning / prescriptive analytics / advanced data management / robotic process automation (RPA) / robotics
Results
Full transparency at all levels of the network – end2end / focus on Sub-Tier visibility
All necessary data & information for all network levels up-to-date, available & accessible
Critical areas & processes of the network / alternative scenarios
(Mitigation) strategies / prioritised action areas / implementation roadmap
Efficient & appropriate monitoring & controlling system, responsibilities & processes
Stabilizing the network requires cross-functional work in four dimensions
To meet these requirements, supply chain network management focuses on four key dimensions: operating model, network design, information system, and planning & control.
1. Operating Model
A supply chain network must be managed, controlled and strategically developed across the board.
2. Network Design
deals with the configuration of all the different players along the value chain – end-to-end.
3. Data & Digitalization
The IT systems as business enablers ensure efficiency and transparency in the network while managing digitized processes, digital networking, and business intelligence.
4. Planning & Control
has the task of supporting all components in the network with the appropriate planning processes and establishing effective controlling.
10 immediate measures to increase network performance
- Create transparency of supplier/customer/logistics and component data
- Establish a task force for missing and critical parts
- Optimize the warehouse and safety stock
- Optimize sales, operating & planning/forecast figures
- Start possible relocations/build alternative sourcing & solutions
- Maintain and build supplier relationships
- Place binding orders
- Analyze the global footprint (supplier, production, customer)
- Rethink the make-or-buy strategy
- Monitor supplier risks
YOUR EXPERTS FOR Supply Chain Network Management
We are happy to support you in optimizing supply chain processes, structures or networks by addressing them in a holistic manner. Our international network of companies in Europe, Asia and America allows us to flexibly and quickly implement customer and market-specific tasks on a global scale.
Thomas Spiess
Member of the Executive Board
Phone: +49 7024 8056 0
E-Mail: kontakt@staufen.ag
More about Supply Chain Network Management
Go Green – an opportunity for long-term competitiveness
Heat records, forest fires, dried-up rivers and lakes – climate change caused by greenhouse gas (GHG) emissions can no longer be ignored. In Germany, industry is responsible for around one-fifth of GHG emissions.
Read more
The future of supply chains
Ole Trumpfheller from DB Schenker is convinced: customers and service-providers must adopt a collaborative approach to guarantee a secure and scheduled movement of goods in the future.
Read more