Improved operational efficiency and flexibility with a dual target operating model

About  

Our client, a leading global provider of innovative products, services, and software solutions for construction professionals. With more than 32,000 employees worldwide and a presence in more than 120 countries, they deliver high-quality tools, fastening systems and construction software designed to improve safety, productivity and precision in the construction industry. As our client continues to grow and evolve, the supply chain must adapt to meet new demands, including the addition of large-scale projects and fleet services.

The challenge

As the company expanded its product and service portfolio beyond standard construction tools to include large projects, new opportunities for optimization emerged within its supply chain. To continue delivering high-quality service to its customers, they recognized the need to enhance its end-to-end segmentation, inventory control, and planning capabilities, ensuring greater ability to respond efficiently to market demands. 

Key optimization areas included: 

  • Adapting planning design to better support new business models and evolving customer needs. 
  • Enhancing end-to-end segmentation for products and services to further optimize processes. 
  • Reducing manual effort by introducing more automation, boosting efficiency, and minimizing errors. 
  • Improving inventory visibility for better coordination across the entire supply chain. 
  • Strengthening forecasting and demand planning to enable more proactive decision-making. 
  • Enabling rapid scenario simulation to support dynamic and data-driven supply chain management. 

By focusing on these areas, our client is shaping a future-proof supply chain that aligns with its corporate strategy and helps them to achieve higher levels of supply chain operating performance. With the implementation of a new target operating model and a fit-for-purpose advanced planning system (APS), the company is enhancing its ability to serve customers with speed, precision, and reliability.

The project

EyeOn worked closely together with their supply chain leadership and operations team to assess their readiness to implement and support the 2030 corporate strategy. One of the main realisations was that to fulfil its growth objectives across several business segments, they had to move away from a one-size-fits all way of running the supply chain. EyeOn as an effect supported in the design of a dual Target Operating Model (TOM) and related improvement roadmap that addresses the company’s unique and differentiated planning challenges. The dual supply chain model comprises two integral approaches into one global supply chain network:  

  • Efficient Supply Chain model: focused on standardization, automation, and product availability. 
  • The Value-Added Supply Chain model: focused on flexibility, customer intimacy, and agility.  

Results 

By partnering with EyeOn, they are now equipped with a Target Operating Model (TOM) and an actionable roadmap for transformative supply chain improvements. As part of the transformation journey they will benefit from the following project outcomes: 

  • Segmented planning: Clearly defined and differentiated operating model principles and planning methodologies per supply chain typology.  
  • Decision-centric planning processes: Streamlined and decision-focused processes that span the entire supply chain scope, enhancing planning precision. 
  • Redefined roles and skills: Introduction of key roles, such as a central end-to-end planner, to strengthen coordination and optimize operational flow. 
  • Functional requirements for APS: EyeOn’s recommendations ensure that the selected APS will effectively support dual supply chain model, aligning with their long-term goals. 
  • Comprehensive action plan: A structured roadmap for implementing process enhancements, organizational adjustments, and new technologies to achieve seamless transformation. 

Through EyeOn’s expert contributions, our client has created the platform to realize significant improvements in flexibility, responsiveness, and efficiency within their supply chain network. 

Ready to drive sustainable value from your next Advanced Planning System digital transformation? 

Our guide provides you with an end-to-end APS digital transformation framework based on proven strategies used by industry leaders. Download your copy here or get in touch with our end-to-end transformation specialists right away. 

 

 

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