Overview: Demand & Supply Management

The Supply Chain must now play a cross-functional role in optimizing and creating a permanent trade-off between different factors

Context

The Supply Chain must now play a cross-functional role in optimizing and creating a permanent trade-off between operational costs, the resulting inventory levels, and the nature of the service provided to the customer. It is no coincidence, therefore, that the most competitive companies in the world are precisely those that have a top-performing Supply Chain.

 

Challenges

The Supply Chain lies at the core of the service strategy, which must achieve an optimal balance between the service offering by customer/product segment, the costs involved, and the inventory generated accordingly.

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We help managers to define this service strategy in line with their global strategy and targets in terms of margins and working capital requirements (WCR).

The main challenges facing managers of companies of all sizes now include those relating to governance and operational organization, the optimization of business processes, and the associated alignment of information systems.

 

How can Argon Consulting help you?

   1.  Supply Chain governance

Defining a company’s Supply Chain governance (organization, responsibility for inventory or processes, internal service level agreements, etc.) is an essential prerequisite for any improvements in performance. 

Our broad experience across a range of sectors has revealed to us the different Supply Chain models structured primarily around the complexity of the supply (industrial complexity) and demand involved. We have found that the most efficient companies were those which had successfully defined a governance system consistent with these models.

   2.  Target processes 

The second essential step in transforming the Supply Chain involves defining target processes that are also consistent with the Supply Chain model. These processes must be supported by efficient information systems, which incorporate decision making support and optimization capabilities.

The processes involved are as follows:

  • S&OP (medium- to long-term balance between capacity, inventory and demand)
  • Demand management (creation of sales forecasts, demand plan, and consumption by orders)
  • Inventory management (definition of ideal inventory levels by item segment and location, according to their target service levels and the responsiveness of the upstream chain)
  • DRP (distribution requirements planning) and inventory deployment in the downstream network
  • Production management and planning (multi- and single-site master production schedules, and scheduling)

We help our clients to define their targets and implement these processes and the associated information systems.

   3.  The case for change

Beyond defining targets, we firmly believe that any changes in a business can be justified in relation to the challenges involved. We collaborate with operational management to identify potential deficiencies and assess performance levers at the start of the project.

   4.  Organizational change

Lastly, bringing about change in organizations is at the heart of our business. This process requires a broad consensus on the issues identified and their solutions and steers our approach throughout the project, which is executed in close collaboration with our clients’ teams.

Case Studies

Development of a program to reduce stocks and cut logistics costs
Deployment of Supply Chain processes, teams and information system
Adapt the purchasing and supply chain organization to support strong international growth
From the supply chain vision to the deployment of processes and the implementation of a supply chain planning information system
Optimization of a leading petrochemical company’s MRO supply chain
Development of a stock reduction program
How we helped a leading European consumer goods supplier to build and deploy a flow management and supply chain planning target vision
Boost performance by cutting stocks and improving the service rate by overhauling the processes and deploying supply chain planning tools
Transformation projects in the aeronautics sector: critical for supporting sector growth
Drivers for reducing inventory and increasing flexibility in the pharmaceutical industry