- perform customer impact analysis by region, channel or market
- perform customer prioritization and analysis
- evaluate potential product substitutions
- redirect sales to new market opportunities
Scenario Planning
RAPID RESPONSE ASSESSMENT
Our Rapid Response Assessment package provides you with the critical tools necessary to develop the right strategy when facing highly unanticipated events. Our team can quickly lead your stakeholders through this process of discovery and action.
Major unexpected events, such as the current coronavirus pandemic, can cause massive disruptions to supply chain operations. Our rapid response assessment package dispatches several dedicated experts to help you identify immediate impacts, develop strategies for mitigation and model the implications of each strategy. We then provide quantitative estimates on the impacts to cash flow, income and balance sheet as well as perform a 12-month NPV value scenario calculation.
OUR THREE STEP APPROACH
1. Evaluate Impacts
Understand the situation, associated threats and opportunities that can be leveraged. Identify scenarios, value stream map each option and determine risks and rewards.
2. Develop Alternatives
Adjust supply chain modeling systems, construct relevant scenarios and develop methodologies to financially value the result of each, considering cash flow and EVA.
3. Capture Value
Analyze each scenario against EVA, working capital and cashflow; conduct sensitivity analysis and review strategy options with executive leadership to select path forward.
COSTS AND BENEFITS
COSTS
Your RRA can begin very quickly. Our team will need immediate access to your planning systems, and key leads in the affected business. Below are the general parameters of a typical RRA deliverable.
| Time: | 3-4 weeks |
| Fees: | $60K – $100K |
| SCMO2 team: | 2-3 consultants |
| Client team: | 2-3 part-time commitments |
BENEFITS
Obviously, outcomes will vary by company and industry, but we typically achieve the following deltas versus taking limited or no action at all. Additional emphasis can be placed on any specific area of focus.
| Sales: | 5-9% |
| Sourcing: | 6-12% |
| Transportation: | 5-15% |
| Manufacturing: | 5-10% |
| Inventory: | 10-30% |
| Service: | 10-25% |
CASE STUDY DISCUSSION
PRINCE INTERNATIONAL
Listen to this conversational case study as Dale Rabenek and Hank Ackerman discuss the various strategies and methodologies that Prince International has adopted to quickly and effectively evaluate scenario responses. Being prepared in advance is always the best response, but sometimes your supply chain needs to quickly pivot in response to unforeseen impacts.
CUSTOMER ENGAGEMENTS
The real power of RRA engagements is the ability to leverage your current supply chain planning processes to help develop the scenarios, define the financial impacts and initiate the implementation of the selected approach. Below are a few of example RRA processes for specific deficiencies.
Customer Fulfillment
Operational Impairment
- perform operational impact analysis by asset, plant, warehouse or distribution center
- shift activities between internal assets
- leverage external assets to relieve constraints
- update crew/shift calendars and define shutdown/startup strategies
Logistics Impact
- perform logistics impact analysis between regions and within regions
- perform logistics impact analysis by mode and lane
- apply alternate logistics sourcing strategies
- change source of supply to meet demand
Supply Availability
- perform supply impact analysis by region, supplier and supply location
- evaluate alternative sourcing strategies
- identify substitute product or services
- implement change actions to transition to new sourcing
Yes, please contact me a Rapid Response Assessment for our organization!
Contact us
Corporate Office
150 East Ponce de Leon Ave, Suite 230, Decatur, GA 30030
Phone
404.596.5383
E-mail
info@scmo2.com
