End-to-End Supply Chain Optimization for Greater Resilience

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Initial Situation and Challenge

• Strong growth requires increased production and places greater demands on the supplier base to ensure product availability
• The current production system is reaching its limits in terms of output. At the same time, assembly line workers are busy searching for parts and performing other logistical tasks.
• Response times in the supply chain are too long: inflexible batch sizes and long lead times result in correspondingly long lead times for changes. The supply chain lacks the flexibility to respond promptly to changing conditions.

Procedures and Solutions

• Systematization of the supplier base and definition of a clear supplier strategy for contract awards and logistical integration to govern collaboration within the supply chain
• Definition of the processes and setup for logistical supplier integration and assignment of standard strategies to supplier or material group segments
• Technical and organizational integration of suppliers in accordance with the new process logic and the creation of transparency in the supply chain
• Redesigning assembly processes and making make-or-buy decisions by reviewing the scope of purchased parts and pre-assemblies
• Consistent separation of assembly and logistics to increase the capacity of assembly staff; redefining job responsibilities as a prerequisite for sustainable scaling up
• Development and implementation of a comprehensive change management strategy to ensure sustainable organizational integration

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Results of the collaborative project

• Reducing lead times for purchased parts from suppliers
• Increasing delivery frequency and reducing batch sizes to ensure a continuous supply of materials
• Redesign of logistics operations to ensure a supply of materials suitable for assembly
• Increasing assembly output by extending the cycle time while simultaneously reducing lead times
• Reducing inventory levels while increasing material turnover and flow rates. Minimizing risks in the supply chain
• Minimizing supply chain risks through quick response times, a high degree of flexibility, and low inventory levels
• Successful change management to establish accountability and foster a shared, consistent understanding of roles through cross-functional change management

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