It is not always easy for a business to understand the true cost of supply chain complexity. It can be hard to recognize the impact it is having on day-to-day operations, product availability and critically, customer service.
At BearingPoint, we often advise businesses to take a more structured approach, one that widens the typical analysis that is routinely undertaken. The aim is to create a new perspective and series of insights of direct concern to the Board. We can then focus on the three themes that address the true ‘Cost of Complexity’:
These fundamental themes still draw upon the philosophies of waste and time reduction, and the removal of process variability but crucially, they address business processes across all dimensions of complexity.
At BearingPoint we have developed a fact-based approach that yields practical results that can be quickly implemented:
There are good reasons to put mastering complexity on your agenda. Revealing true supply chain complexity will help identify the real cost drivers and enable a focus on net profit. It will deliver a clear, repeatable and agreed cost position for a business, an essential requirement for benchmarking performance and delivering operational improvement.