David

David

  • 13 years expe­ri­ence in stra­tegy & opera­tions consulting
  • Focused on supply chain & opera­tions across indu­stries with exten­sive expe­ri­ence in retail and consumer goods
  • Loves horses – competed in horse driving, curr­ently autho­rized judge in dressage, mara­thon and obstacle driving

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Typical star­ting point of client

  • Tradi­tional „brick-and-mortar”-oriented compa­nies (retailers as well as consumer goods produ­cers) who want to grow digital sales chan­nels through closer inte­gra­tion with the end consumer quickly realise that the required supply chain is different.
  • Requi­re­ments of supply chain capa­bi­li­ties can change drama­ti­cally and in combi­na­tion with high digital growth rates lead to severe disrup­tions in supply chain costs and service levels.
  • A typical wareh­ouse opera­tion could easily have to handle an increase in number of order lines of +300% just from trans­fer­ring 10% of sales volume from a tradi­tional store reple­nish­ment flow to a B2C flow, which will have a massive impact on costs and profi­ta­bi­lity if not handled correctly.

Inno­va­tive approach

  • First of all, every func­tion in the orga­ni­sa­tion needs to realise that a shift from tradi­tional to digital sales chan­nels can be an extreme change and needs to be thoroughly assessed to iden­tify gaps and define appro­priate actions.
  • Instead of twea­king an existing supply chain setup to make the new fulfil­ment models fit into existing opera­tions, make sure to adopt a customer-side view to really under­stand what the key diffe­ren­tia­tors will be when opera­ting in a digital envi­ron­ment and what your specific “customer promise” needs to be (for example, regar­ding order-to-deli­very lead-times, real-time order hand­ling, full trans­pa­r­ency of stock levels and ship­ping options).
  • Define what will make you the winner in the new market space and trans­late that into a set of core capa­bi­li­ties for your supply chain func­tion that you need to develop to fulfil the customer promise.
  • Assess your capa­bi­li­ties to under­stand existing gaps that impede digital growth – make sure to cover all func­tions involved, from manu­fac­tu­ring and plan­ning to wareh­ou­sing and distri­bu­tion, but also support func­tions like marke­ting, customer inter­ac­tion and finance.
  • Secure internal align­ment on trade-offs between costs and profits as well as invest­ments needed to make sure that sales and pricing fore­casts correctly reflect the increased supply chain costs that typi­cally come from online flows.

Effect/result

  • True under­stan­ding of cost and service impacts from a digital sales shift and internal align­ment on 1) needed actions / roadmap and 2) impact on overall growth as well as profitability.
  • Ability to gradually shift volumes from offline to online without risking service levels or cost-efficiency.
  • Clear ratio­nale for initia­ting customer and consumer dialo­gues on digital busi­ness opportunities.
David

David

  • 13 years expe­ri­ence in stra­tegy & opera­tions consulting
  • Focused on supply chain & opera­tions across indu­stries with exten­sive expe­ri­ence in retail and consumer goods
  • Loves horses – competed in horse driving, curr­ently autho­rized judge in dressage, mara­thon and obstacle driving

Want to get to know David?

Get in contact

Still curious?
There is more to see here:

All impulses