Value chain
Where is your company’s value really created, and where does it leak away? A cross-functional analysis shows it with facts, and indicates which activities to reorganise to increase overall value.
When does it help?
- Margins are shrinking and it is not clear where
- Support functions are growing faster than the business
- Logistics and distribution cost too much, or serve customers poorly
- You are considering shared service centres or outsourcing
- After years of growth, nobody has the overall picture any more
Which levers do we work on?
- End-to-end process mapping, with a proprietary method that measures time, effort and cost of activities while keeping the time asked of people to a minimum
- Artificial intelligence to read documents, data and flows faster
- Logistics and distribution
- Administrative and support processes: continuous improvement, shared service centres, outsourcing of transactional activities
- Indirect costs, with analyses based on real needs and actual usage data
How do we approach it?
Analysis techniques have existed for years, activity-based costing for example. But what guarantees the result is long practical, industrial and cross-functional experience: knowing where to look and what can really be changed. We use concrete, low-intrusion tools, and carry the choices through to execution.
From our experience
A European contact lens company reviewed all its marketing, sales, distribution and support activities across the single market. At the heart of the project was a single European distribution centre, keeping 24-hour delivery for thousands of points of sale and tens of thousands of items. Result: profitability up by about 10% and a stronger organisation.
Where do we start?
With a process diagnostics, which shows where value is lost, or with an indirect cost review, which delivers results within a few weeks.
See also: Indirect cost optimisation · Time and cost