Fast is the NEW NORMAL - When Speed to Market Strategies Allow You to Stay Ahead of Competition
Ensure fact based financial driven decision are made when adapting speed levers
Very often, companies may not know where to start their Speed-To-Market journey. To ensure resources are focused on the right levers, we recommend using our Speed-To-Market evaluation tool kit. Each category has standard evaluation criteria, recommended solutions and financial framework to evaluate impact to your company.
Weave – Speed to Market Transformation Assessment
Now, let’s illustrate how the evaluation tool kit works in reducing lead time with raw material planning.
Raw materials are one of the biggest contributors to lead time, but companies often fail to manage it in a cost effective manner.
Reducing raw material lead time is often an effective way to increase speed. But doing it in a way that does not expose your company to large amount of obsolete inventory, is more difficult. Our client had a bad experience in the past which resulted in a large inventory write-off. It is not uncommon for companies to take the first step towards Raw Material planning for this very reason. Therefore, we have developed a tool that enables our clients to find the right balance between time gained and financial implications.
Weave – Risk based raw material planning tools
Calculate lead time reduction through raw material planning
- Breakdown lead time according to Bill Of Material (BOM)
- Group raw material based on lead time
- Calculate lead time reduction based on the level of pre-positioning
Decide raw material planning strategy
- Input target lead time reduction to identify materials to be pre-positioned
- Evaluate risk level and financial impact on working capital
- Consider months of coverage, cost, shared colors, shared sizes, purchasing sequence, MOQ at SKU level
- Execute plan with vendors to achieve lead time reduction target
Talk to our team to find out more about Speed-to-Market evaluation!