Avoiding expensive mistakes in supply chain decision-making

Uncertainty and complexity in supply chains make good decision-making difficult. Traditional decision support methods often fail. In this white paper PA Consulting Group postulates that multi-million benefits can be realised through the use of the right decision support and modelling techniques - proven by client projects for the BBC, London Underground and Nissan as well as for healthcare and food manufacturers.

Improving supply chain performance is critical to businesses because of strong links between supply chain effectiveness and profitability. For example, there is a need to make the best use of limited resources, target new investments wisely and deliver business strategy cost-effectively whilst minimising business risk.

Traditional supply chain decision-making takes into account neither the full complexity of the situation nor the many interrelated factors. Typical decision-making tools are too simplistic and static to make the right supply chain decision. The result will be an expensive mistake.

For three reasons, PA believes that significant monetary benefits are achievable through the application of dynamic decision modelling:

1. Modelling incorporates supply chain complexity where more innovative options and better solutions lie, compared to when only one part of the chain is considered

2. The modelling approach is tailored to meet the business situation, ensuring it is fit for purpose, produces the right solution and delivers value in real-life

3. The principle of ‘fit for purpose’ delivers business benefit, whether it is strategic, tactical or operational.

To start the dialogue on how to avoid expensive mistakes and to receive the complete version of this paper, please contact us now.