Approach to Operating Model Design & Governance
What is the best way to design an operating model and organizational structure that will effectively support your supply chain strategy? With this service and in collaboration with each customer, DHL Consulting reviews key supply chain processes to identify optimization potential. We also define the scope and approach of any outsourcing and create a suitable framework for managing logistics service providers. In addition, we review supply chain steering governance and organization, highlighting areas for improvement and use this information to outline roles and responsibilities. A further step is to define the organizational structure of the supply chain function as well as corresponding reporting lines and steering mechanisms in local operational units. We can also identify a set of relevant KPIs and define targets to help steer the supply chain.
The overarching impact of this service is support for supply chain strategy by clearly defining the outsourcing approach, organizational design, and governance principles.
Designing the best supply chain operating model
One of our customers runs multiple building supplies stores in the Middle East. This company was anticipating strong business growth but realized the existing supply chain operating model would not be able to cope with planned expansion. DHL Consulting delivered standardized end-to-end processes, including level-2 process descriptions, and a blueprint for the organizational supply chain department. We also introduced performance measurement and the concept of supply chain steering, and defined high-level IT requirements. With this service, the customer established a target operating model that will enable its growth plans while also integrating supply chain processes and the supply chain network across functions and interfaces.