Supply Chain Technology Strategy

Effective IT support is fundamental to the successful operation of modern supply chain management – and this begins with the strategic fit between an organisation's business and technology strategy.

Challenges

Many organisations struggle to develop an appropriate technology strategy that supports their supply chain. This often arises as a result of mergers and acquisitions, unclear strategic direction, subjective and disconnected decision making, or lack of investment in appropriate areas, and can result in additional cost in fixing unanticipated IT issues, tools and software that do not meet business requirements, inefficiency and lack of confidence in tools and software.

Opportunities

Examining the effectiveness and viability of an organisation’s IT system from the perspective of supply chain requirements is essential during mergers and acquisitions and for organisations looking to maximise their return on supply chain technology investment.

Considering the overall strategic fit and integration of the supply chain IT function can have a significant effect on the return from technology and the effectiveness of the supply chain. Furthermore, this can provide insight into performance issues for on-going businesses.

In addition, when considering a merger or acquisition, the objective assessment and valuation of IT assets can contribute to the negotiation strategy, provide a accurate view of the true value of the target, enable a successful integration of the two companies’ Supply Chain IT functions, and provide an realistic view of expected investment and returns.

Approach

GRA will help develop, build or refine your Supply Chain Technology Strategy to align your IT strategy with the organisation's strategic objectives. The methodology utilised is also designed to bring to light significant issues that need to be addressed. 

In order to build a view of an organisation's IT and Supply Chain Strategy & Maturity, as well as to understand if and how an organisation can get the most out of their current IT assets, this methodology examines an organisation from the following perspectives:

  • Strategy Support
  • Business Continuity
  • Human Capital
  • Operations
  • IT Assets

During a ‘Pre-merger phase’ this can determine what aspects of the acquisition target’s IT function have implications that should be understood for the supply chain before the acquisition. 

Alternatively, during a post-merger or on-going phase GRA will assist the management team in systematically evaluating the company’s supply chain IT function in detail. GRA will also identify all significant risks that need to be mitigated, including compliance, operational and strategic risks.

Outcomes

By developing, reviewing, and refining your organisation's Supply Chain Technology, GRA will help your organisation: 

  • Develop an integrated Supply Chain Technology Strategy appropriate to your organisation
  • Understand gaps between current and desired future state
  • Align IT Investment and Projects with Business Strategy
  • Support business processes and organisational capability
  • Enable business transformation and the ability to respond to opportunities & threats
  • Manage Supply Chain Technology risks
Benefits

Typical benefits resulting from an effective Supply Chain Technology Strategy include:

  • Increased ROI on Software Investment – improve value from IT Investments by the alignment and integration of business and technology strategy
  • Use of supply chain technology to drive competitive advantage
  • Organisational Effectiveness; manage complexity and gain greater clarity & insight into your organisation
  • Reduced issues such as out-of-stocks, expedited orders, write-offs etc.
  • Grow confidence and consistency in the strategic decision making process

– BACK TO CONSULTING

Testimonials

“GRA are passionate about supply chains. They worked closely with our business to support the delivery of a multi-million dollar supply chain transformation. From the initial diagnostic to the business case and all throughout the implementation – GRA maintained a professional and results focussed approach.”

– Brad Hurst, Regional Supply Chain Director ANZ & Global Supply Chain Integration Project Lead, Allnex

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)