Insights of Supply Chain Management

Strategic levers for a strong and competitive supply chain

Multiple supply chain challenges are reducing working capital (cash) and margins

These challenges include escalating material and freight costs, increased inventories, poor delivery performance, and rising capital costs driven by inflation and high interest rates. Additionally, technology disruptions such as artificial intelligence (AI) and the shift towards e-mobility are further complicating matters. Political risks stemming from unstable political situations, regulatory pressures, and sustainability concerns add to the complexity. Operating costs, including labor and energy expenses, are on the rise, alongside complexity costs driven by portfolio variance and technological diversification. Moreover, intensified competition, marked by the emergence of new competitors and business transformations, amplifies the challenges.

Companies should leverage short and long-term supply chain strategies

Customer Value added

CASH BALANCE

up to

+25%

in Projects with focus on solvency

Short-term

Optimizing stock levels and enhancing supply chain efficiency with “Plant Inventory Task Force”.

Long-term

Thrive for holistic invest optimization based on invest-zero-based budgeting, demand Management and concept battles

COST REDUCTION

up to

-15%

in Projects for more profitability

Short-term

Optimize supplier network by
ensuring supply chain resilience in given structures

Long-term

Reduce global operating cost by optimizing R&D, SCM as well as Operations footprint

REVENUE INCREASE

up to

+20%

in Projects for higher turnover

Short-term

Winning strategic new business by proactive negotiation support for cost and CO₂e

Long-term

Winning strategic new business by optimized end-to-end integration across strategic programs

Short-term plans that stop the bleeding should be in alignment with the longer-term strategy

The multitude of challenges, including rising costs, technological disruptions, political instability, and regulatory pressures, poses a significant risk to business performance, potentially falling short of investor expectations.

Call for action

  • Survival of the fittest: without taking action, competitiveness decreases
  • Immediate short-term actions are necessary to stop the erosion of cash, revenue and margin
  • Short-term action can finance the effectiveness of structural long-term actions that are necessary to become competitive again
  • Don’t risk long term success with “wrong” short term actions: aligned mix of short- and long-term actions necessary

Alignment of short and long-term actions result in a sustainable recovery that meets expectations

TSETINIS-EFESO aligns and optimizes multiple levers to improve your supply chain

We have identified several levers that can significantly improve the cash situation within your company by 5-25%. These levers encompass various aspects of your business operations:

Optimization levers

  • Sales enhancement & customer satisfaction
  • Overhead efficiency
  • R&D effectiveness
  • Optimized purchasing
  • Operations productivity
  • Manufacturing footprint
  • Manufacturing overhead reduction
  • Working capital reduction
  • Asset utilization

Actions (selection)

  • Pricing / negotiations
  • Productivity improvement in overhead
  • Efficient Research & Development processes & organization
  • Global sourcing / Best Cost Country Sourcing
  • OEE / production management
  • Relocation to Best Cost Country
  • Efficient logistic & quality management
  • Warehouse management
  • Make-or-buy decisions

Our supply chain experts bring sustainable recommendations to improving competitiveness, cash flow, and margins

To successfully manage today’s supply chain, an internal analysis must first be performed to identify which initiatives to focus on and in which order to deploy them

BOOST – Focus on Cash

  • Ensure liquidity
  • Create cash
  • Cost cut

BUILD – Focus on costs & stability

  • Competitiveness
  • Stable processes
  • Functional structure

TRANSFORM – Focus on growth & margin

  • Develop future strategy
  • Best in class performance
  • Increase turnover and margin

Maintaining liquidity is consistently prioritized in the short term. However, it’s crucial to ensure that incorrect cash stabilization doesn’t result in future issues, such as a “brain drain”. Taking a big picture, it’s essential to consider the long-term impacts of short-term actions. The starting point for addressing these concerns depends on the current situation of the company.

We will analyze and recommend short- and long-term levers that optimize your supply chain

Supply Chain Management
Our Specialists

Working with the most qualified TSETINIS-EFESO Consultants is key to your success.

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

Dr. Kenneth Sievers

Partner

Purchasing / Supply Chain Management
Organizational Development / PMI
Performance Improvement

+49 151 64963427

k.sievers@tsetinis.com

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