Supply chain strategy

LCP’s definition of supply chain strategy is - ‘the design and planning of the end-to-end chain to maximise the potential to meet customer demand at the lowest possible cost’.

True end-to-end strategies are complex - bringing together the customer demand and fulfillment, the sourcing and supply of material, and a company’s own manufacturing and distribution operations.

Today’s pressures are immense, with the demand to financially perform and increasing competition from local, regional and global competitors.

Customer-driven supply chain strategy is about identifying what should be done to enhance supply chain performance, supported by tangible practical detail as to how this can be achieved. It defines areas where companies need to do things differently, a road map for getting there. It is supported by a business case carrying high levels of certainty to win buy-in at the highest level.

Strategic changes may take longer to implement than those from short or medium-term operational initiatives but the levels of performance improvement will be much higher. Improving control and efficiency in the short-term may reduce the cost base by 5-10%, whereas a strategic change programme could reduce it by 20-30% - and also dramatically improve customer service.

For multi-national businesses, we combine the operational with strategic tax planning and Duty considerations. Tax-effective supply chain management (TeSCM) brings dramatic and sustainable reduction in effective tax rates and significant increases in cash flow to companies with international supply chains. It’s helped some of the world’s largest multinationals to achieve annualised benefits of £10m to £1bn.

We have:

• redefined, designed and supported the change in the repair and service operation of a global manufacturer - 40% reduction in inventory, 10% business cost reduction
• designed the end-to-end supply chain of a major UK retailer - resulting in changes to the consumer offer, the process of supply and the ways of working with the suppliers
• transformed the European supply chain operations of a Japanese multinational by creating a road map of process, manufacturing and sourcing changes. This resulted in a 40% release in working capital, increased business volume and a cost base that was 15% lower.

At the core of our strategy work is the set of fact-based tools and techniques that give an accurate quantitative basis to our solutions.