Doing business with partners throughout the world is the new norm. An organisation’s value chains, (i.e. the series of steps taken to deliver products or services) depends on many business relationships that would impact the Operating Profits and therefore EBITDA. Your organisation should manage its value chain to drive success and The CFOO Centre Limited can play an important role is this.
To unlock competitive advantage, The CFOO Centre Limited will follow Traditional Methodology, Monozukuri and the ODI’s 20 Keys Methodology of improving value chain by:
(i) Analysing the current process (from inception to end) of the value chain and identifying all the connections between the different activities,
(ii) Detailing the current value chain from A to Z.
(iii) Data collection of the most relevant information on the activities and connections. Verification of the authenticity of the data. Such data would be different for service sector organisations as compared to manufacturing sector organisations. Examples include cycle times of activities, the number of staff needed for each activity, activity duration and time between each step, the cost of activities, the efficiency of machinery used, the efficiency of methods applied, inventory turnover, the value of assets, the ratio of defective products, the consumption of energy at each stage, waste levels etc.
(iv) Mapping (and rectifying if needed) of the value chain diagrams/data and discussing with the team members concerned.
(v) Restructuring the value chain by looking at a list of standardised questions and redesigning the value chain. The purpose here is to change or eliminate activities that add little value.
The CFOO Centre Limited
The CFOO team, has relevant experience in Supply Chain Management . Our CEO has been the Operations Director of 2 extremely large and profitable organisations (including a subsidiary of a FTSE 250 company), the Finance Director and Supply Chain Director of a company in the service industry and more recently the Chief Financial and Operating Officer (CFOO) of a multinational plastics manufacturer.
The Supply Chain teams amongst others were direct reports. The value chain/supply chain role in all the above organisations was divided into 3 key objectives including:
(i) Improving products and services.
(ii) Reducing costs.
(iii) Creating value.
Call us on +254-736-515-168 for a no obligations chat. We would help you be more competitive to achieve more value from your value chain.