Operating Model Design
Operating models define the supply approach for each segment of demand, the manufacturing footprint and how this is planned and executed to provide resilient, low cost supply chains designed to deliver the increasingly complex range of customer commitments. Often this forms a key part of the delivery from a full Cost to Serve led transformation.
Iter’s supply chain portfolio profitability review, as a subset of a full Cost to Serve analysis, provides objective clarity about the true profitability of delivering each segment of demand. This is used to design operating models, manufacturing footprints and the balance of internal and contracted manufacture to provide resilient service and minimised operating cost and working capital.
Operating model design and delivery provides the opportunity to deliver sustainable benefit in all three aspects of supply chain optimisation:
|Working Capital||Service||Operating Costs|
|Global operating models ensure the strategic positioning of inventory to “lubricate” the supply chain at lowest overall inventory cost||Routes to market and manufacturing and distribution networks designed to exploit the operating models delivering all your customer commitment||Manufacturing footprint and make/but decision making based on the true profitability of all segments of demand|
Our approach matches the portfolio analysis and an objective analysis of the strengths and limitations of the physical supply, its control systems and processes by:
- Value Stream / Process Mapping
- Inventory Modelling
- Key stakeholder interviews / discussions
See how Iter supported Owen Mumford in optimising their Operating Model.