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Realigning and Designing Value Added Structures
All of the optimization approaches within the scope of supply chain excellence initially target cost position optimization. In doing so, it is undeniable that the positioning of production in an important business market also includes brand strategy considerations. It is also certain that optimized supply chain lead time decreases and service levels can be increased; thereby having an influence on revenues.
Nevertheless, these are indeed desirable and preferable side effects, which are, however, a byproduct of process optimization, which is first and foremost directed towards supply chain efficiency.
Accordingly, the simplified three levels of supply chain excellence differentiate themselves:
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Global Supply Chain Design:
deals with how the global supply chain is currently structured, and how this can be further developed given the backdrop of future markets, customer needs, competitive situations and vendor structures.
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Supply Chain Optimization:
addresses all topics, which aim to optimize the current supply chain while retaining the given basic conditions. Take for example: location and work-related concepts, production segmentation, value stream design, supply planning, inbound logistics, material flow optimization, outbound logistics, spare parts logistics.
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Puchasing Management:
Unfortunately, purchasing management is significantly affected by the rude behavior of individual automotive OEM´s compared to suppliers. This behavior is criticized in the press, giving them a bad name due to blind cost cutting on the backs of those without power. Accordingly, signifant potential exists for purchasing management, which can and must be enhanced through a joint and harmonized approach between customers and suppliers. Examples of such approaches include: supplier anlaysis and selection, supplier auditing, global sourcing, supplier management, company-wide logistic process optimization as well as risk management.
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Product Optimization:
The optimization of existing products or products just shortl of their market introduction using process-oriented design-to-cost methods certainly first and foremost allows for cost position optimization. Accordingly, an intelligent combination of product analysis (i.e. Quality R&D, value analysis, benchmarking) and process analytical methods (i.e. value stream analysis, interface analysis) for application, which in a multidisciplinary approach including vendors and customers can lead to process and material cost savings of 10% and up to over 30%.
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