An ever growing part of commercial success is depending on your supply chain capabilities. It is commonly accepted that the supply chain needs to be configured as agile as possible to support the increase in market dynamics. MTC-Logic shares the common vision that speed and flexibility must be the cornerstones of any supply chain strategy. There are many good end-to-end strategies yet the speed of things is putting a bigger pressure on your process excellence than ever before. Even questions in your organisation like: “Why is the new product launch postponed?” and “Why is our markdown budget increasing?” are connected with the performance of your supply chain. The answers to these questions generally point into the direction that some-one, some-how was late. MTC-Logic has developed an approach to find more actionable answers to these questions.
Traditionally there are certain steps to implement the end-to-end supply chain strategy. The steps to make the strategy work usually start with board level sponsorship. Next step could be that consultants are hired to manage and support the change at senior level and to provide training sessions to the workforce. At the same time systems are enhanced or replaced. Your end-to-end strategy is translated into new working procedures and system functionality. Why is this top down approach not good enough anymore?
MTC-Logic found out that the main reason traditional implementations fail is complexity. The most advanced IT systems can support calculations on the lowest level of transactions, in retail this means SKU-location; 500 locations with on average 20.000 SKU’s make potentially 10.000.000 calculations a day. These data driven engines have a lot of power but are difficult to drive without a proper dashboard. In these data driven environments the chance exists that strategic targets get lost in translation.
The two layers of top down strategic targets and bottom up data hit each other like salt and sweet water. From system point of view there will be many software implementers that will claim they can make the waters blend. From the other angle there are many consultants waiting in line to fix this problem for you. They probably both have a piece of the puzzle. MTC-Logic suggests a different approach. We module the translation on tactical level together with your senior managers, not just high level system requirements but also taking into account cross functional alignment of KPI’s and incentives.
MTC-Logic looks over the boundaries in your organisation to maximise achieved margin by flexibility and speed against the lowest supply chain costs. In order to achieve this some of your KPI and incentives have to be reset and synchronized between different departments. An end-to-end strategy from push to pull is the right way to go but what do your planners do if the pull is constantly disturbed by unexpected push requests? What are your planners guidelines if capacity is constrained and they have to make a choice: hitting your promo launch date or prevent lost sales on your basic assortment? MTC-Logic models these priorities on tactical level in a segmented approach. The fundament of MTC-Logic is a Flow&Event© framework that separates different product streams in your supply chain into segments. Per segments we have developed certain templates to maximise availability, inventory turns and flexibility at the same time.
Our expertise makes the connection between business rules and system parameters. Interested in our solutions?