Supply Chain Transformation - SAP
Turning to growth
Supply chain was the instrument that helped many companies weather the global economic downturn. The more attention they focused there, the more efficient they became, and the more costs they could trim.
Supply chain transformation is a business issue before it becomes a technology issue. Every change you make to the supply chain can trigger a cascade of direct and not-so-direct effects on your business, so you need a team that knows the implications of change. Deloitte knows how to deliver results from your supply chain that match your company’s most important business goals, using a wide range of business and technology experience. Learn more about the offering.
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- Mike Lehman, Director, Deloitte Consulting LLP
- Application Upgrades – SAP
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- Finance Transformation – SAP
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Learn more about the offering
Today, expectations for cost containment are still high but the goalposts have started to shift. Many companies are turning to their supply chains to help support efforts to start growing again – maintaining the disciplined cost structure they honed in the downturn while adding the flexibility they need to write the next chapter. And transformation can play a big role in their strategy.
New Challenges – and a New Focus On the Supply Chain
The supply chain is a natural place to turn to drive value, to address persistent cost pressures and to meet other emerging challenges. Facing tighter regulatory controls, companies in many industries need to improve visibility and tighten quality control. Plus, while they have worked hard to reduce costs, there is always more to be saved. Improvements in the supply chain can help companies take big steps to address all of these issues and more.
For many executives, the problem is figuring out where and how to start. Is it best to focus on smaller initiatives to gain maximum results in the minimum amount of time? Or should you look at the big picture with transformation in mind, addressing everything from forecasting to planning and execution? If your goals are limited, small steps may be warranted. But many organizations today are looking for bigger results – ones they cannot achieve by any combination of small steps. That is where supply chain transformation comes into play.
How we can help
Supply chain transformation is a business issue before it becomes a technology issue. Every change you make to the supply chain can trigger a cascade of direct and not-so-direct effects on your business, so you need a team that knows the implications of change. Deloitte knows how to deliver results from your supply chain that match your company’s most important business goals, using a wide range of business and technology experience.
When it's time to bring technology into the picture, our close collaboration with SAP means that we know how to deliver effective business solutions. SAP is a leading provider of supply chain technology, delivering an integrated solution that addresses the full life cycle.
Here are some of the services we offer:
- Supply chain strategy and planning
- Sourcing and procurement
- Manufacturing excellence
- Logistics and distribution
- Product innovation and life cycle management
- Reduce operating costs
- Improve operating and financial performance
- Meet and improve service level targets
- Reduce inefficiency throughout the supply chain
- Increase quality and regulatory compliance
- Establish stronger, more transparent relationships with key partners
- Standardize processes to ensure compliance
- Lower business risk profile
Five ways to get more value now
We have helped some of the largest and most successful companies in the world transform their supply chains. Here are some of the ways to get more value from your supply chain:
Optimize your network. Leaning out assets, focusing on profitable customers, aligning conversion costs, synchronizing supply with demand – these are all areas where the right technology can make the difference and where manual processes come up short.
Cut material costs and enforce compliance. Sourcing and procurement technologies offer the ability to transform data into valuable information. If you retool your sourcing technologies and processes with this in mind, they can be an engine for saving money and meeting critical requirements.
Lean out operations. Technology can support Lean initiatives through advanced data collection and reporting capabilities that track performance, support production scheduling, enable paperless production and much more.
Pursue targeted product innovations and time-to-market reduction. An integrated product life cycle management system can help streamline the product development process and speed time to market. It can also yield labor savings of 30% to 50% and reduce cycle time by as much as 50%.
Get the right product in the right place. By enabling the rapid communication of information across operations, technology helps synchronize transportation and logistics with other critical elements of the supply chain. These improvements can also initiate a chain reaction of related benefits including increased on-time deliveries, lower delivery costs, improved reverse logistics and lower inventory requirements.
Supply Chain Transformation in action
- Data quality and visibility problems in the supply chain were responsible for growing inefficiencies for a global pharmaceutical company, and hampering the organization’s ability to plan effectively. With operations in more than eight countries and a tangle of legacy systems left from many mergers and acquisitions, the company needed a solution that would address technology shortcomings as well as the underlying business processes. We helped implement a Product Lifecycle Management solution that delivered strong data management capabilities and increased visibility. Just as importantly, we helped change the way departments collaborated, making the technology even more effective. Today the company has a global standard for product data and processes and has dramatically increased data visibility throughout the organization. That means faster product launches, decreased staffing needs, more accurate planning and better collaboration.
- When legacy supply chain management systems began to obscure end-to-end visibility in this company’s supply chain, the effects deeply impacted its world-class service parts organization. It became harder to collaborate with partners. Operating costs were growing. And the resulting collection of systems did not scale well as the company continued to grow. Despite its excellent track record, the company knew it needed a new approach to help manage the snowballing complexity of its supply chain and pave the way for continued growth. We helped the company design a whole new industry solution for service parts management, comprised of a service parts planning engine, extended warehouse management capabilities and extensive CRM functionality. While this ambitious effort is still underway, the company is already seeing results such as improved service levels, better inventory management, lower operational and maintenance costs and improved collaboration with supply chain partners.
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.