Challenge
Many companies continue to struggle with structural deficits that leave them highly vulnerable to risks. Most lack a comprehensive End-to-End (E2E) strategy, which is crucial for driving digitalization and cost optimization. Historically, these organizations have developed without the supply chain capabilities necessary to address future challenges.
Key process improvements can be achieved through the integration of Supply Chain Management (SCM) in new product introductions and robust supply chain planning. However, performance management often falls short, particularly in tracking supplier performance and ensuring transparency in the status of supplied materials.
To meet future challenges, employees need clear development pathways to acquire essential SCM capabilities and skills. The most significant gap lies in the digitalization of SCM, which is vital for achieving transparency and supporting accurate, rapid decision-making.
Significant backorders, for instance, lead to customer dissatisfaction, substantial sales losses, and a sustained decline in service levels and distribution center output. Identifying the causes of KPI declines and developing a comprehensive turnaround roadmap is essential to increasing sales and improving overall performance.