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Sustainable best cost sourcing

Food4Thoughts

Carbon penalties, local content requirements, climate / weather events and a changing global political landscape are putting pressure on global supply chains. To avoid significant cost increases, companies must transform their supply chains to be sustainable, resilient, and competitive.

 

Our sustainable best cost sourcing approach provides solutions for redesigning global industrial supply chains at best cost.

From global to local sourcing – a paradigm shift?

New external factors are putting pressure on global supply chains:

  • CO₂ pricing and the lack of understanding within organizations
  • Increase in local content requirements
  • Changes in the global political landscape

 

Booster effects, such as climate change impact or Covid-19, are multiplying this pressure and increasing the need for sustainable best cost sourcing.

 

Organizations worldwide need to reshape their sourcing strategy.

Competitiveness of global supply-chains at risk due to new influencing factors

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Many companies are flying blind

The multidimensional influences on supply chains, the uncertainty of those and the lack of appropriate tools are becoming the biggest challenge for organizations in short term.

 

The lack of understanding how these influences are impacting the total cost of ownership leads to reactive behavior rather than actively managed challenges. Consequently, supply chain cost will increase significantly – putting companies’ profit at risk.

What is the new total cost of ownership?

To actively master these new cost factors, companies need to answer two major questions:

  • What is the overall cost impact on Total Cost of Ownership?
  • What is the best cost sourcing approach and how to leverage local vs. global supply markets?

Active management of multidimensional factors using sustainable best cost sourcing

The solution to these new complications is complex. Alternating relations between the cost factors exist and are not always easy to comprehend. Increasing the transparency about the new cost factors and their multidimensional relationship is crucial for future success.

 

We are providing a structured success proven approach to comprehensively evaluate and reshape your supply chain, keeping best Total Cost of Ownership in focus. Stay competitive!

Developing the right sourcing strategy to reshape your supply chain and improve TCO at sustainable best cost

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Sustainable sourcing, a shift from global sourcing to local / regional sourcing, appears to be the new paradigm shift in industrial environment.

Finding the right balance without impairing the company's profitability is the new challenge. Having the right approach and toolset to manage the challenge ahead, keeping the supply chain resilient, and sustainability in mind, is the key to future success.

 

We are already doing it!

Speak to an expert

Working with the most qualified Tsetinis 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.

 

Get started now!

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Martin Kruschel

Partner

Materials Management

Product Profitability Programs

Restructuring & Organizational


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Dr. Kenneth Sievers

Senior Principal

Materials Management

Post Merger Integration Programs

Profitability Programs


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