“Our strength lies in strategizing across business & IT and delivering real business value through the leverage of the Triple-S philosophy – simplify, structure, and synchronize”

Setting the operations model up for success
Managing a supply chain is not very different from playing a volleyball game, delivering a philharmonic symphony or building a palace – it is a team effort that can only be as good as the teams capabilities, the tools they are offered, the company’s fundamentals that support or limit your efforts, and finally the external aspects affecting you.

In Syncronic, we strongly believe that supply chain performances are best delivered when business and IT are made for each other, and are well thought through in an aligned, agile and adaptable operations model. Executing such a model requires great people, processes and supporting technology – and an underlying fundamental setup to boost execution.

Our Strategy services are targeting that underlying setup to help clients deliver great performance. Basically, we help our clients to simplify, structure and synchronize the fundamentals of their operations model.

Typical symptoms indicating that the fundamental nuts and bolts are out of place:

  • The market are offered too many products, variants, services and new options that the supply chain are not able to keep up with
  • It is unclear how products are best allocated in the supply chain across DCs, warehouses and plants – but you know it is not good
  • You have initiated multiple improvement activities to enhance flow and increase efficiency, but firefighting just keeps increasing – while service levels deteriorates and leadtimes unpredictable
  • Your organization is a hindrance to good performance, is inflexible, and runs significantly poorer that peers in the industry
  • IT has been set up centrally with mandates and policies that does not support your ambitions – it has become a straightjacket
  • Your internal and external cost, and the capital tied up in stock and inefficient machines are starting to get top managements attention – you need to act, now!

1. Simplifying

In today’s globalized world – where competition is though, customer requirements enormous and the need for focus evident – simplifying and managing value chain complexities are essential to profitability and growth

Increasing complexity in modern value chains threaten to dilute profitability and weaken business competitiveness. Simplifying and managing value chain complexity reduces supply chain challenges, risks, and need for capital dramatically and lead to growth in revenue and increase profitability.

Fundamentally, a supply chain system complexity is managed through two central factors: The elements in the system and how their relationships are defined. How many elements and how diverse they are affect the one factor, while how many relationships there exists and how diverse they are affect the other.

In Syncronic, we consider complexities to originate from these four fundamental sources – collectively they form the system you are trying to manage. In a supply chain system with hundreds and thousands of products and services, tenfold the variants, multiple types of customer relations and contracts, deliveries across the world with different channel partners in each region, multiple plants and locations to source your raw materials, etc. – you are bound to be challenges with complexity.

The ability to uncover, understand and restructure complexity is a basic skill which is integrated into many of our strategy services – and we offer it as a focused discipline.

Reducing value chain complexity

2. Structuring

Top performers make Agile, Adaptable and Aligned structures” *

Structures in the business model
You know the structures in the operations part of your business model are poor performing when:

  • Customers are expressing dissatisfaction with leadtimes and delivery services
  • Rush-order and expediting are an every day activity – troubleshooters are king
  • It is unclear how products are best allocated in the supply chain across DCs, warehouses and plants – but you know you have too much in stock
  • Distribution costs are skyrocketing and some distribution centers are underutilized
  • Your organization is a hindrance to good performance, is inflexible, and runs significantly poorer that peers in the industry
  • IT has been set up centrally with mandates and policies that does not support your ambitions – it has become a straightjacket
  • Your data structures and application architecture does not support the new digital opportunities including analytics,

Over time, structures become ineffective and limit a company’s competitiveness and growth. The need for a frequent check of a company’s structures across the physical and virtual supply chain, organization, technology, and tasks is becoming more and more evident as market dynamics increase and opportunities inflate.

Syncronic focus on optimizing structures
Syncronic help clients quantify potentials, identify and define roadmaps that transform or simply improve the operations model and deliver significant benefits while supporting company growth, e.g.

  • Support top managers in developing competitive business models, i.e. design technology architectures to support aligned and balanced end-to-end flow of materials, data, cash and risk;
  • Optimize supply chain networks across distribution, manufacturing and sourcing;
  • Help develop efficient and capable organizations, effective business process structures.

Beyond transformational roadmaps, we help solve specific and dedicated structural issues.

*Adapted from Hau Lee, Thoma Professor of Operations, Information and Technology at Stanford.

Supply chain structural elements
Factors affecting fundamental value chain design elements

3. Synchronizing

During the Great Recession corporations championed supply chain synchronization as a way to reduce inventory and free up working capital, and that business mindset is here to stay”*

Aligning the business model at a tactical and operational level
Aligning supply chain mandates, governance, management principles and process design from end-to-end is key to success in any business model, and are based on an efficient alignment and collaboration of three layers: 1) policy layer, 2) planning layer and 3) steering / execution layer. However, one of the challenges of supply chain management is developing ways to effectively integrate organizational functions, activities and people skills across internal and external parties.

Our expertise
We work closely with executives, managers and people at all levels in an organization to transform the company strategy and overall operations objectives into future tactical and operational play rules for the synchronized supply chain. The target often is to create the operations part of a competitive business model with perfect customer service, optimal cost and capital, and sufficient agility and adaptability to be able to embrace the next 3-5 years of change on the market side.

A synchronized supply chain is not just about mandates, policies, principles and processes – bridging business & IT is one of Syncronic’s core capabilities, and our clients leverage this to convert their strategic and tactical business needs into selections, design and implementation of the right supply chain tools. We help you all the way through to success!

Financially, our clients on shorter term experience:

  • Significant cost reductions
  • Need for less capital tied up in stock and poor utilized assets

As a longer-term consequence clients experience:

  • Revenue growth and high customer satisfaction
  • No firefighting and high employee satisfaction
  • Reduced level of risks
  • Significant competitive boost

*James A. Cooke, 2014

A synchronized supply chain