Increasing performance orientation through a supply chain target operating model in the chemical industry

Initial situation

A global trading company for chemical products needed to improve its supply chain organization
Speed and reliability were crucial in order to meet rising customer expectations
Product prices and market shares were under high pressure and profitability was at a critical level
The supply chain was centralized, decisions were not made by the functions with the best insights
Performance orientation and customer focus were to be improved, while at the same time synergies within the Group had to be maintained and strengthened

Core roles defined

OTIF level reached

Mindset

Focused on greater customer and performance orientation

Apply design principles to align the operating model of the supply chain with the management logic
- Establish clear end-to-end (E2E) logic in the organization
- Supply chain implements the business strategy, logistics is a value driver
- Sales, Inventory and Operations Planning (SIOP) handles the planning, Order-to-Cash (O2C) the execution
- Making decisions at the lowest possible hierarchical level
- Define clear responsibilities within the value streams
Anchoring target structure permanently via new key roles and new organizational chart

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All cases

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