Supply Chain Risk Analysis to Gauge Supply Chain Performance – A SpendEdge Case Study for a Specialty Chemicals Company
Engagement Overview: The client wanted to gauge the performance of their supply chain. To proactively address the growing complexities of their global supply chain, a specialty chemicals company approached SpendEdge to devise a comprehensive approach to supply chain analysis. A detailed quantitative analysis of supply chain was carried out to accurately forecast inventory and production needs […]READ MORE >>
The client wanted to gauge the performance of their supply chain. To proactively address the growing complexities of their global supply chain, a specialty chemicals company approached SpendEdge to devise a comprehensive approach to supply chain analysis. A detailed quantitative analysis of supply chain was carried out to accurately forecast inventory and production needs of the specialty chemicals client.
Supply chain analysis enabled the client to integrate risk prioritization as a core strategy in their current risk management system. Following this, the specialty chemicals company redesigned their risk management system to uncover risk factors and include proactive risk mitigation strategies.
About the Client:
A multinational chemical industry client specializing in the manufacturing of specialty chemicals. The client is a leading player in the chemical industry with several well-established subsidiaries operating in over 35 developed economies.
The specialty chemicals company was facing difficulties in gauging the performance of their supply chain.
How did SpendEdge Help the Client:
- Step 1: Developed a three-step methodology that offered a clear roadmap of the specialty chemicals space
Our supply chain analysis experts followed a structured approach to develop a supply chain management framework.
- Step 2: Mapped the supply chain activities
This step involved the identification of activities, establishments, resources, and regulatory requirements that are required to create a flowchart to obtain an overview of the supply chain activities. It also offered details on the flow of raw materials and products throughout the supply network.
- Step 3: Developed a framework to gauge the impact each factor involved in the supply chain
The final step involved the quantification of the supply chain activities and their contribution to the flow of materials both in monetary and physical terms. This helped the client to assess the importance of each factor impacting the overall performance of the supply chain.
Key questions answered in this supply chain analysis study include:
Benefits of the Engagement:
Our supply chain analysis solution helped the specialty chemicals company to analyze every stage of their supply chain activity, starting from the acquisition of raw materials or supplies from the suppliers to the delivery of finished products to the end-user segments. The primary objective of the supply chain analysis engagement was to determine the impact of factors affecting the supply chain and to deliver the finished products more quickly and efficiently to the end-users. Also, the supply chain analysis offered greater visibility into supply chain processes by establishing a cohesive relationship between all tiers of the supply chain.
Why incorporate supply chain analysis?
Supply chain analysis helps in the identification of supply chain activities or processes that can be bypassed to reduce inventory costs and improve forecasts. It also helps organizations to optimize their supply chain processes and minimize redundancy while assisting in the creation of enhanced value-added services.
Supply chain analysis encompasses a wide range of functions that may seem daunting even to a well-established specialty chemicals firm. However, it can be effectively modeled by dividing them into several strategic areas. A supply chain analysis study that aims to determine current real-world practices in supply chain risks implies a radical takeoff from conventional models.
It expects organizations to redefine their supply chain management strategies and adopt a continuous approach to detect supply-side risks, classify risks, and prioritize them to drive business value. Moreover, supply chain analysis is a process, which not only emphasizes on the shortcomings in various segments of the supply network but also between the supply chain and the end-users.