Choosing the right Value Chain Model

Challenges and complexity of supplier networks

Early recognition and taking preventive measures are essential for an optimized supplier network. In addition to quantitative characteristics such as structural costs, value chain and local content requirements, qualitative criteria such as flexibility and service must be an integral part of the design of the supplier network. Protection tariffs or reductions in subsidies affect not only individual suppliers, but entire regions. This can quickly turn a previously cost-optimized value-added chain into a particularly expensive alternative. If this has not been recognized in advance and compensatory alternatives have not been planned, the only option left is to continue to produce at the site at high cost or to take a lot of money for new investments in suppliers.

Optimize the supplier network

The optimal supplier network is not only cost-effective, the costs remain within a calculable range even in the event of negative external influences, such as currency fluctuations. In extreme cases, it is designed in such a way that it can be restructured to cover costs and individual suppliers or regions can be removed from the network.

Take a close look at the Value Chain

How good and stable is your supplier network? In order to find a quick and precise answer to this question, POLARIXPARTNER has developed a suitable mathematical model that maps the customer-specific value chain in a targeted manner and simulates various scenarios.

By processing cost matrices, all cost factors are recorded. Transportation costs between different locations are automatically calculated on the basis of the integrated logistics computer. The respective local production costs, if not known, can be determined using POLARIXCOSTING.

Once all cost-relevant data has been determined, the individual risk acceptance can be adjusted using various parameters. This allows you to determine the optimal point between "short term cost effective" and "long-term stable", which best reflects your own strategy.

We are happy to advise you on Value Chain Modelling

You want to optimize your value chain and need advice? Feel free to contact us at any time.

Your direct contact
Benedikt Kehr

benedikt.kehr@polarixpartner.com
+49 6581 8290-249
+49 151 52743449

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