Mastering product complexity (PDF, 3316 KB) - Roland Berger

11
A. KEY FINDINGS
Four optimization approaches improve companies' flexibility and
responsiveness in light of increasing product variety
4
PRODUCT
SUPPLY CHAIN
PRODUCTION
Approaches to optimization
Approach Principle Effect
PRODUCT
STRUCTURE
OPTIMIZATION 1)
SUPPLY CHAIN
SEGMENTATION
SUPPLY CHAIN
INTEGRATION
PRODUCTION
FLEXIBILITY
> Share and increase common parts,
e.g. through option pricing, and move
the point of product differentiation
toward the end of the supply chain
> Split and adapt supply chains in line
with customer requirements
> Establish responsive supply chain
design for highly differentiated
product groups and volatile demand
> Integrate processes and information
flows across functions and supply
chain partners
> Establish end-to-end KPI system
and common incentive system
> Segment production and increase
flexibility
> Reduce cycle times in order
processing, production and logistics
> Economies of scale in upstream
supply chain
> Greater forecast accuracy for semifinished
products and enabling
function for build-to-order strategies
> Supply chain design fits product and
demand characteristics
> Superior supply chain performance
> Greater transparency regarding
supply performance
> Integrated control makes firms more
responsive to shifts in demand and
optimizes global performance
> Reduced delivery lead times
> Larger part of supply chain can be
controlled based on customer order
1) Product portfolio streamlining not in scope, since a differentiated product portfolio is seen as a given framework condition
for which appropriate complexity levers need to be established