True performance excellence in the supply chain: the result of bringing three different types of excellences to work integratively together In our observation, companies often focus their improvement initiatives on specific problem areas, in order to overcome this problem. But - this leads in most cases to a performance increase in one area, but does not really leverage the full potential of the newly implemented solution. Or, even worse, it sometimes leads to suboptimal operational performance in other areas We have seen that successful companies push for balanced, integrative solutions which address the different types of needs, and value contributions, in the entire value chain. Based on these insights, we have developed a systematic way to help companies to improve their supply chain in a high-impact, sustainable fashion The concept builds on separating three different types of excellences, which need to be brought into context to unfold the true performance improvement impact. By separating these three types, we can systematically work on each to enhance the level of excellence by addressing the excactly right spots for improvement. Functional Excellence is the foundation of running proper operations. This dimension addresses the working performance in each department, and in each process and transaction. The chain is only as powerful as its weakest link - therefore every department involved in the information, order, material, and financial flows needs to be very good in what they do. Focus is on execution quality, speed, flexibility, and relability. Horizontal Excellence describes the dimension of creating the flow across functions and departments. This is the prerequisite for smooth and fast processes to make and distribute products and services. This is the almost “traditional” view of the chain, looking in an end-to-end fashion from supplier to customer (or even deep into the supply side, and down over the chain to the final consumer). Focus is on the throughput speed, the effectiveness and efficiency of flows, flexibility and reliability of processes. Vertical Excellence addresses the cross- functional collaboration in the product definition, manufacturing preparation, distribution design, sales channel/partner selection, or supplier selection processes. Focus is on creating the right conditions for product quality, product cost, production effectiveness and efficiency, flexibility and reliability of the entire chain, and to define all requirements and requisites for high-performing flows.
In our service offerings, we identify how to shape your current operations towards a better balance of value contributions, to systematically enhance performance Identification of strengths and weaknesses in all areas of the supply chain operations Root cause, and impact analysis on reasons for strengths - and how to even more leverage on them Root cause, and impact analysis on the weaknesses, in order to identify which type of improvement is required Systematically linking performance shortfalls to the three dimensions of excellence, and the related improvement needs (type of improvement, quality and performance level of future state operations) Defining the required mix of excellences, if necessary, for individual supply chain types (e.g. spare parts vs new products; high volume production vs specialty / customized production) Identifying potentials and required practices for improving internal and external collaboration (internal functions, customers, suppliers, partners) Re-Adjust the “Balance of Powers” to achieve maximum value-adding impact from all participantes Identify areas and opportunities for targeted outsourcing and partnering to build on super-strength of high-performing providers Define measures and enablers for enhancing agility and resilience of operations along the end-to-end supply chain