The complexity of supply chains is constantly increasing.
the words “supply networks” describe the situation better, nowadays. Most companies in countries like USA, Germany, Switzerland do not even produce more than 50% of the real net output ratio (vertical range of manufacture) anymore. If you buy a Porsche 911 or Boxter you will purchase 20% of Porsches’ in-house production and 80% of “I don’t really know”! Even worse if you go for a Porsche Cayenne, where Porsche contributes just 10%. This leads to the following hypothesis: “the stronger the brand, the less in-house production the company does”. This hypothesis can be tested in various industries like automative (Porsche), IT (Apple) or even espresso machines (Jura). But this is not the main topic of this article.
If your company contributes just 10% to the real net output ratio (which equals 10% of what your customer is willing to pay for), do you really think that it’s just you competing against other companies, other products or another services? NO! It is competing against other value networks!
Managing value streams (networks) is the key to success!
How many companies changed their organization model along the value stream? How many companies still have silos with a VP Operations + VP Sales instead of a VPs for each complete value stream? This is a big hurdle for many companies to overcome. Good chance to beat them in a competitive situation.
But re-organizing your company towards a lean company is still a piece of cake, comparing it to the efforts necessary to understand the complete supply network. Do you know who supplies the screws and bolts to the supplier of your supplier? It’s good to find, understand and balance your own bottlenecks (theory of constraints), but do you know the real bottlenecks in the complete value net? Only by getting full transparency and an honest and fair relationship to your suppliers, you can be really competitive in the market. This is a long way to go and it is almost impossible to go this way just by your own.
Taiichi Ohno said: “All we are trying to do is to reduce the time from order to cash”.
Lean Interim GmbH can change your company to become a winner in the value network race
When we founded Lean Interim GmbH, we understood that full transparency and trust is the only way to succeed. Our company existence is based on adding value to the value stream of our customer, every single day. We share our passion and our value system in the strong believe that a value adding step should never be delayed by a non value adding step. We decided for the word “lean” in our company name only for the reason to share our value system, our philosophies and our passion for continuous improvement and respect for people. The demands of the end customer is what drives us to manage change inside our client companies. Interim Management is about trust. The investment in an interim executive can be done for many reasons, but we guarantee that our “HowTo” is transparent, traceable, reliable and sustainable for the future.
[important]We will just one part in your service network. But we will change the way you think and act.[/important]