1. Supply Chain Reengineering
Vision, Process & Value for Client

2. Vision
Eliminate Process that does not add Value; Reassess ALL Process to maximize that Value
Optimize the Balance between Quality & Cost of Handling Materials
Strive toward 100% Variable Pricing

3. Process Identify Key Value Choices Make your Choices
Defect Levels -- Cosmetic Criteria -- Supplier Intimacy
Target Pricing -- Order to Delivery Turn -- What Segments to change/which to leave alone
Make your Choices
Set your Supply Chain Strategy to support your Choices
Model Key Costs via the Supply Chain Strategy

4. Process (2) Note on Choices Trade off choices
What to include inside the box under the new program model
RE: Trade offs –
Often require broader enterprise input (e.g., engineering, legal or finance
You are basically deciding what to include and what to eliminate in the re-engineered program
E.g., Start further downstream & forego supplier mgm’t;
Trade offs lead to lost value
Foregone opportunities are NOT easily included later
Can remodel by product line, regional market, etc. – Good for phasing in, bad for capturing real value

5. Process (3) Reality Check Apples to Apples
Review your current supply chain costs
Review the value results of your current supply chain choices
Apples to Apples
* We can run current cost analysis before the NEW program costs are modeled. This will help set a foundation for “real world” numbers
** Value Results are based upon your customer satisfaction, your product’s rating in the market, quality measurements of your product and of your supplier’s parts, etc.