Supplier Network Rationalization looks at factors unique to each company such as manufacturing footprint, quality, deliver and flexibility targets in order to identify the right suppliers and implement them into the supplier network in order to provide the lowest total cost based on maximizing manufacturing effectiveness with the utmost efficiency.
CGN Global’s Supplier Network Rationalization approach allows companies to set up the strategy for various sourced part families starting from high level (few global suppliers, regional/local suppliers) down to the execution level using our honed Plan for Every Part (PFEP) techniques. We take traditional strategic sourcing techniques and link them with Total Cost of Ownership (TCO) capacity studies. Our robust method has time and again proven applicable to complex sourcing scenarios – such as multiple receiving locations and multiple sourced categories – or to new manufacturing locations.
Some key advantages of CGN’s Supplier Network Rationalization are:
- TCO-based decision-making
- Trade-off scenario analysis
- Linking strategy to execution
- Family-based sourcing strategies (definition of family by manufacturing process similarity)