Strategic Competitive Advantage through High Performance Supply Chain Management
Supply chains are under pressure. The pandemic has highlighted the limits of traditional SCM processes and exposed the vulnerabilities of international supply chains. And we are already facing the next test: the consequences of the war in Ukraine. Additionally challenged by new regulations as well as rapid technological development, companies often resort to short-term partial solutions to cope with the acute challenges - with mediocre results. SCM can determine the success or failure of companies and must therefore be at the top of the strategic agenda.
With the right design approach to High Performance SCM
High performance organisations have recognized this. They view SCM from a holistic business perspective and gain a significant competitive advantage by anchoring their SCM in the organisation with a clear design approach. This involves eliminating weak points along the entire process from supplier to customer. This not only strengthens SC performance and resilience, but also enhances customer value, increases process efficiency and optimizes purchasing prices.
The strategic and operational activities of SCM must be systematically embedded in the business process model. Strategic development (Develop) lays the foundation for high performance SCM, while operational excellence is ensured in day-to-day business (Run). The strategic activities in Develop have a scope that is often underestimated: experience shows that up to 80% of the costs incurred are determined in this framework. The design criteria of a high performance organisation help to tap the potential of high performance SCM.
Current fields of action in High Performance SCM
For a high performance and sustainable value chain, it is essential to find the right balance between increased customer value, increased process efficiency and optimized purchasing prices. An isolated focus does not do justice to SCM as a cross-functional process - it must be viewed holistically as part of the business process model. Experience values of hpo show that five fields of action currently deserve special attention. The deepening of the individual fields of action shows what the concrete challenges are, how we classify them, and how the challenges can be mastered.
With a targeted approach to high performance
Based on your individual challenges in SCM, we design the approach to support you in the direction of High Performance SCM. According to the following diagram, we proceed in four phases: Based on your individual SCM action areas, we perform an as-is analysis to then design the SCM target picture with clearly defined design criteria. A successful roll-out can be ensured in the final phase through the targeted involvement of those affected.
Who is hpo?
hpo makes companies more successful and more innovative. The strategy consultancy for enterprise design boasts more than 25 years of experience in the creation of strategies and organisations spanning many different industries. The management consultants at hpo specialise in the meticulous development of strategies, processes, business models, innovation and culture, and in the consistent alignment of these together with their targeted implementation. The basis of the industry-spanning design approach is an academically grounded methodology with which companies are shaped and which is continually further developed with the latest findings from research and practice.
hpo – we design organisations