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CONTENTS
Value chain strategy design and implementation in the automotive industry
Designing and implementing a new value chain strategy, while thoroughly preparing an automotive OEM for its truly global expansion.
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THE BRIEF

A premium automotive OEM with a local industrial footprint, was planning a truly global expansion and needed to rethink the entire value chain strategy and setup to get themselves prepared for upcoming challenges. The client needed to analyse and understand what implications the expansion would have on current value chain strategy, processes and organisation, and then determine how to address those.

Value Chain Strategy Definition
The engagement was split into five main areas, where the initial value chain strategy definition was guiding the direction of the other work-streams.

The client needed to analyse and understand what implications the global expansion would have on current value chain strategy, processes and organisation, and then determine how to address those.

The engagement successfully delivered the design and implementation of a global value chain, which in turn enabled on-time launch of a new manufacturing site and flawless delivery from the entire value chain organisation.

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THE SOLUTION
Five main areas of the engagement
1

Value chain strategy definition where a new overall vision and mission was crafted and anchored with C-suite. This served as the guide when defining the supply chain strategy and principles, and to ensure alignment and harmonisation with overall business- and financial priorities.

2

Design of global supply chain setup and flows. Defining overall material flows with optimised modes of transport (train, truck, ocean, air) for different legs, cross-dock design and localisation, freight in terms and financing of material for long distance flows.

3

Design and setup of a new sales and operations planning (S&OP) process with corresponding governance model to balance supply and demand, but also to introduce more flexibility into the industrial system. In addition to the new S&OP setup, it included demand planning, ordering, scheduling and capacity management.

4

Detailed design and implementation of selected functional areas and specific processes, to enable the new industrial footprint in practice. Moving from the design phase into implementation implies getting into the details and making sure everything is set up in a proper way. This area covered e.g. sourcing of new logistics service provider, setting up a new customs management function, setting up and launching the newly designed cross-dock, defining and implementing a landed cost process to allow for proper calculations when evaluating potential suppliers and defining the new role of supply chain controllers.

5

Organisational design with governance structure and KPIs to support the global setup, including defining the split between local, regional and global functions.

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THE RESULT

The engagement saw the successful design and implementation of a global value chain, which in turn enabled the on-time launch of a new manufacturing site and flawless delivery from the value chain organisation.

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