How wisely managed value-adding complexity becomes a business advantage. 

complexity, performance gap

Today’s internal complexity article concludes the insight into the eight root causes of the supply chain performance gap. Internal complexity means complexity resulting from inside the company such as organizational structure, type of organization, number and types of processes, internal and external interfaces, corporate culture, business activities (e.g., product and service development), and mergers and acquisitions. The good news is that internal complexity can be directly influenced and reduced through different actions, from executive decisions on business and corporate structure to processes, personnel, and products.

 

Dr. Christoph Kilger
By Dr. Christoph Kilger

Sustainability in the supply chain as a key differentiator

complexity, performance gap

Our planet and its people face one of the greatest challenges in history – to become more sustainable. Supply chains do not escape this challenge and reforming the supply chain to become more environmentally friendly is one of the major tasks of the future. Sustainability is defined as meeting our own needs without compromising the ability of future generations to meet their own. Therefore, it is vital to maintain an ecological balance and avoid the depletion of natural resources to a point beyond recovery.

Georg Hantschke
By Georg Hantschke

How to obtain supply chain resilience while being ahead of regulatory complexity

complexity, supply chain, performance gap, VUCA

In today's globalized world, regulatory complexity is one of the root causes to lacking supply chain performance. This article presents the sixth of eight root causes we defined for supply chains lagging behind their potential. You will find an overview of all root causes in the first post of our ten-part series. For more details, jump to the related article. 

Dr. Christoph Kilger
By Dr. Christoph Kilger

Active Supplier Network Management: a key figure in business success

complexity, supply chain, performance gap

Today, we give you an insight into our 5th root cause: the complexity of supplier network. In the previous articles, we already addressed the root causes of product portfolio complexity, speed of innovation, new types of competition, and multi-channel sales complexity.

 

The complexity of supply networks is determined by the diversity of supplier relationships and their changes over time. The main drivers for the diversity of the network are the number of suppliers involved and the topology of the network, which is expressed in the number of levels, the degree of networking, and the types of relationships. Examples of supplier relationships are direct material suppliers, logistics services providers, contract manufacturers, engineering contractors, equipment vendors, and professional services providers. In addition to the structural complexity, the geographical location and thus political and social structures have an additional influence on the complexity of the supplier network.

Dr. Christoph Kilger
By Dr. Christoph Kilger

How decisions on your sales channels lead to strategic supply chain design requirements

complexity, supply chain, digitalization, S&OP

This article will analyze the complexity resulting from the coexistence of several different sales channels. It is precisely this complexity that continues to be the cause of supply chain performance issues. As a basis, you can check the previous articles from the 10-part series about the root causes of the supply chain performance gap that started with a summary and headed right to the root causes - product portfolio complexity, speed of innovation, and new types of competition.

Dr. Christoph Kilger
By Dr. Christoph Kilger

Product portfolio complexity: the big unknown player in supply chain performance

complexity, supply chain, performance gap

Supply chain performance is a measurable indicator based on turnover, costs, and capital employed. We have identified 8 root causes for supply chains lagging behind their performance that we are happy to share with you in a series of articles. Today we will dive deeper into the one cause with the biggest impact on your supply chain performance: product portfolio complexity.

The 8 root causes we have identified are:

  • Product portfolio complexity
  • Speed of innovation
  • New types of competition
  • Multi-channel sales complexity
  •  The complexity of supplier network
  • Regulatory complexity
  • Sustainable requirements
  • Internal complexity

Dr. Christoph Kilger
By Dr. Christoph Kilger

Supply Chain Segmentation: why you should segment your supply chain.

complexity, transparency, data science, VUCA

Increased levels of customization and particularization of every capability have made their way into all forms of business and production. The supply chain has not been able to stay out of this domain of reorganization, and as a result, supply chain segmentation is a hot topic.

Dr. Adrian Reisch
By Dr. Adrian Reisch

Living in a VUCA World: Complexity

complexity, innovation, VUCA

This week, we're taking a look at Complexity: the third concept in the VUCA framework. In this sense, a complex world means a world where you deal with many interconnected parts and variables, and large amounts of information need to be processed to make sense of all aspects and their influence.

Dr. Adrian Reisch
By Dr. Adrian Reisch

Product portfolio complexity

product portfolio, complexity, supply chain, performance gap

The product portfolio and complexity have the biggest impact on supply chain performance. A supply chain's purpose is to provide physical goods. The number of physical goods and their structure (number of raw materials, components, variants) determine directly the quality of forecast, the amount of safety stocks and the delivery performance.

Dr. Christoph Kilger
By Dr. Christoph Kilger
Supply Chain Brief