VALUE CHAIN
COLLABORATION PART C
OPPORTUNITY IDENTIFICATION & EXECUTION
VALUE CHAIN
COLLABORATION
PART C
OPPORTUNITY IDENTIFICATION
& EXECUTION
WHEN VALUE CHAIN PARTNERS SHARE THE SAME VIEW OF THEIR REALITY, IT FACILITATES FACT-BASED COLLABORATION AND A COMMON FOCUS ON EXTRACTING THE REQUIRED INSIGHTS AND DATA.
WHEN VALUE CHAIN PARTNERS SHARE THE SAME VIEW OF THEIR REALITY, IT FACILITATES FACT-BASED COLLABORATION AND A COMMON FOCUS ON EXTRACTING THE REQUIRED INSIGHTS AND DATA.
In our previous Insights piece, we unpacked the identification of opportunities and risks and
how it can drive significant movement in product cost and selling price.
In our previous Insights piece, we unpacked the identification of opportunities and risks and how it can drive significant movement in product cost and selling price.
IN PART C, WE WILL SEE HOW INSIGHTS AND
DATA SUPPORT THE EXECUTION OF
OPPORTUNITIES AND RISKS IDENTIFIED
IN PART C, WE WILL SEE HOW INSIGHTS AND DATA SUPPORT THE EXECUTION OF OPPORTUNITIES AND RISKS IDENTIFIED
To facilitate focused collaboration, it is key to achieve a common understanding of how the value chain works. This ensures a joint understanding of risks and opportunities and facilitates the identification of the required insights to drive focused collaboration between value chain partners, along with the facts and data which will be required to deliver on those insights. The common goal should and must be to avoid different versions of the truth as early on in the process as possible.
As illustrated in the diagram below, value chain partners should be focused on golden data threads which help partners to focus on insights and opportunities, hidden within fragmented data sets. The collaboration process should be ongoing and based on facts and data, rather than the results of one-off projects or initiatives. It is built on trust and embedded in the culture of partner organisations and value chain partners share specific data and incentives to collaborate.
TIER 4 SUPPLIER
Input Cost Dynamics
Yields and Losses
Seed Options
Mechanisation Options
Recycling Options
TIER 3 SUPPLIER
Commodity Price
Dynamics
Variety Options
Primary Processing
Waste Hotspots
Procurement Data
TIER 2 SUPPLIER
Cost of Logistics
Waste Hotspots
Sourcing Regions
Secondary Markets
Procurement Data
TIER 1 SUPPLIER
Order Fill Data
Recipe Configuration
Production Efficiencies
Product Costing
Procurement Data
RETAILER / CONSUMER SERVICES
Sales
Promotions
Market Share
Customer Complaints
Store Waste
Product Design
Figure 1
For example, let’s assume value chain partners agree on the need to review and redesign a current product and category offering and target pricing to an opportunity in the market and to take advantage of shifting market conditions driven by consumer needs for a more cost-effective productive offering. It is key for partners to understand the value chain and cost dynamics of the current offering in order to identify and target selected opportunity spaces and the insights and data required to deliver on it.
IN SHORT, A THREE-STEP PROCESS
APPLIES IN THIS EXAMPLE
OPPORTUNITY IDENTIFICATION & EXECUTION
EXAMPLE OF SPECIFIC OPPORTUNITY AND RISK
RELATED TO THE COMMON OBJECTIVES
EXAMPLE OF SPECIFIC OPPORTUNITY AND RISK RELATED TO THE COMMON OBJECTIVES
As illustrated above, insights lead the data requirement and make it possible to link seemingly disconnected aspects with each other, such as commodity price fluctuations with the final product price on shelf.
– And that is a wrap –
If you missed the previous related Insights, you can find Part A here and Part B here.
Part A takes a more in-depth look at the power of collaboration using data-driven insights
and in Part B we unpack the identification of opportunities and risks and how it can drive
significant movement in product cost and selling price.
– And that is a wrap –
If you missed the previous related Insights, you can find Part A here and Part B here.
Part A takes a more in-depth look at the power of collaboration using data-driven insights and in Part B we unpack the identification of opportunities and risks and how it can drive significant movement in product cost and selling price.
VALUE CHAIN SOLUTIONS IS A FULLY-INTEGRATED CONSUMER GOODS VALUE CHAIN ADVISORY AND SOLUTIONS BUSINESS, OPERATING ACROSS MULTIPLE ENTITIES AND GEOGRAPHIES. WE UNDERSTAND AND DEMYSTIFY COMPLEX VALUE CHAIN DYNAMICS FROM SHELF TO SOURCE AND PARTNER WITH OUR CLIENTS TO INTEGRATE FRAGMENTED DATA AND DRIVE VARIOUS INSIGHTS FROM IT TO FACILITATE STEPWISE IMPROVEMENT IN VALUE CHAIN MATURITY, ALONG WITH ONGOING OPTIMISATION AND COLLABORATION.
