Our Supply Chain Excellence Perspective
How do you deal with the realities of the unpredictable and the undefinable in the world of hyperconnected global supply chain complexity? Rethinking the design of supply chain operating systems is the foundational starting point.
In the past, firms dealt with these complexities by overwhelming their supply chain challenges with resources such as extra inventory, people and redundant warehousing. With new technology platforms, firms can advance to outthinking the challenges. In the future, the next frontier is to move beyond the outthink stage to outsmarting competitors. It is within this framework of thinking that ALR has assisted firms in advancing up their supply chain maturity curves to gain sustainable competitive advantage.
Supply Chain Diamond Challenge
To win, firms must simultaneously achieve quadrant one leadership in the supply chain performance diamond. The diamond incorporates four strategic performance outcome areas for the firm: their customer performance perspective, their cost perspective, their capital velocity perspective and in turn, leveraging those three outcome area efficiency and effectiveness gains and re-investing them in their growth based strategic outcomes. Attaining quadrant one leadership requires performance in the top 25th percentile among competitors in your industry for key metrics within the four supply chain performance attribute areas.
When "Quadrant One" top performance leadership is simultaneously achieved in all four performance outcome areas and then maintained in a balanced manner, the financial market analysts recognize these distingushing characteristics and reward the firms who achieve those goals with more favorable recommendations which can lead to a higher PE ratio than their competitors. These high performance winners have a common denominator. The leaders have developed their organizational capability to build and maintain a high performance supply chain operating model and in so doing, enabled industry leadership in their four supply chain diamond outcome areas.