Supply chain optimization

With the increasing challenges in global procurement, many companies feel the growing need to secure their supply chain: If, for example, a supplier solely responsible for certain materials or resources were to fail, this would have serious consequences for production. Diversifying the supply chain through dual or multiple sourcing strategies is an effective means of strengthening resilience and reducing procurement risks. However, an increasing number of suppliers can also result in increased costs and more complex management processes. We compare the advantages and disadvantages of dual and multiple sourcing with the single sourcing concept and explain in which context which alternative is most prone to success.

For companies, inventory management is strategically important and challenging at the same time: In order to avoid surplus goods or bottlenecks, demand must be predicted as accurately as possible. Incorrect planning can lead to considerable economic disadvantages. In order to manage and optimize inventories in line with demand, a high degree of transparency is required in all supply chain processes. In addition to the basics of inventory management, we will introduce you to methods and tools that can be used to increase transparency and thus achieve inventory optimization.

Companies are currently confronted with a multitude of risk events that directly or indirectly impact procurement, production and supply security. Most of these incidents are beyond direct control – yet there are ways to identify risks, adjust processes and optimize systems. The basis for this is supply chain analytics – the targeted evaluation of the data stream that accompanies goods along the supply chain. Our new blog post explains the basics of supply chain analytics.

Conscious consumers and legal requirements such as ESG reporting are increasingly calling on companies to decarbonize the entire value chain. However, many businesses have so far only monitored their SCOPE-1 and SCOPE-2 emissions: direct CO2 emissions within their own company and indirect emissions from energy suppliers. Meanwhile, the SCOPE-3 emissions of the supply chain are still insufficiently recorded. We present a number of examples to show where companies can start and what measures they can take.

In the event of a disruption, an overdependence on individual suppliers or geographical regions can lead to serious bottlenecks in procurement and production. Increased diversification is one way to cushion supply chain disruptions and improve security. We explain strategies that companies can use in order to unleash the full potential of a well-diversified supplier portfolio.