Competitive Advantage through Collaboration
In order to prepare a business world with rapidly changing markets and customer demands, strategically rethinking manufacturing and supply chain strategies has become standard practice in order for firms to succeed. Often, margins of manufacturers and suppliers are razor-thin due to the traditional adversarial approach from the manufacturer based on "just getting the best price" from suppliers. This approach creates short term relief and does nothing to truly improve either party’s competitive position. High commodity volatility continues to create a roadblock in supply and demand and is increasing the strain on manufacturers and suppliers. Without a win-win manufacturer/supplier relationship, pricing and production remains difficult.
Take our survey to determine your true supplier collaboration effectiveness and one of our experts will get back to you with a free, no-strings-attached assessment of where you stand.
At CGN Global, we release value locked in the current relationship of client with critical suppliers by improving alignment to strategy, eliminating supply chain waste, reducing total cost of ownership, better managing capacity through business cycles and increasing product development collaboration. As one of our main areas of expertise, we use a disciplined process to create a balanced win-win relationship that increases supplier motivation and innovation. Read our white paper on Supplier Collaboration here.
Read more about our Supplier Performance Improvement Practice.
Business Transformation Architecture (BTA™) Methodology
CGN has developed the Business Transformation Architecture (BTA™) methodology, which combines a unique blend of customized tools to enable organizations to achieve enterprise alignment and collaborative relationships with key suppliers. It integrates our proprietary Total Cost of Ownership (TCO) Model that captures not only the traditional structural cost elements, but also other costs of Variability, Non-Conformity, and Unavailability at the point of use.
The BTA™ process has a proven track record in driving increased efficiencies and benefits for both partners and to uncover the hidden potential within an OEM’s organization and their supply base. The BTA™ methodology:
- Facilitates design collaboration
- Reduces time-to-market
- Enables low cost country sourcing
- Reduces capital expenditure
- Shortens lead times
- Reduces inventory
- Improves quality and delivery performance
- Reduces operating cost
Our proven methodology focuses on 3 main aspects that enable savings to be recycled into product innovation: Collaboration, Competition and Compensation
With BTA™, savings of 8-12% in overall supply chain costs are achievable. It allows companies to not only greatly improve supplier relationships, but also helps create the type of stable, well-balanced customer/supply chain ecosystem that fosters innovation and a sustainable competitive advantage. Read more about BTA™ here.