Source: Joris Leeman, Jan. 2013
1. Supply Chain costs are increasingly under pressure
. Gross margins are under pressure and costs are going up.
. Many supply chains become longer as companies are shifting their
manufacturing/operational activities increasingly to low cost countries. Longer
supply chains result very often in: more complexity, a higher need for
visibility/transparancy and a higher SC-risk exposure. The overall need for on
time delivery (OTD) and reliability increases.
2. Customer demand is increasingly fluctuating
. Demand is increasingly unpredictable; classic push-models are being questioned.
. Sales order volumes drop and frequency of sales orders goes up, as customers
(B2B) do not want to sit on their stock and are optimizing their cash-to-cash
· Is your company impacted by these trends?
· Do you know what level of responsiveness is required for your customers?
· Do you know at what cost levels you have to operate to meet the future gross
· How much demand fluctuation do you have? Are your forecasts reliable?
· Do you have a lot of stock outs and/or do you have (too) high inventory levels?
· Do you have a 5 year strategic supply chain / logistics plan in place?
· Is your current DC network structure supporting your future requirements?
· Do you know your supplier performance? Do you know your SCM performance to
These are some of the questions a lot of companies are confronted with. The Institute
for BPM can help you to sort out the answers on these questions and mutually
create a SCM roadmap 2020.