How should we source, make and move our products, and at what cost?
Designs the supply network, the inventory policy and the sourcing strategy that balance cost, service and supply risk.
What you receive
The target network of plants and warehouses, the inventory policy, the sourcing strategy and the roadmap.
Plants, warehouses and customers with the flows between them, and the sites to open, close or resize marked.
When to open it
- Logistics and purchase costs rise faster than sales.
- Your supply chain team sees stock-outs and excess inventory at the same time.
- A supplier or a region becomes a single point of failure.
What the project covers
- Network of plants, warehouses and customers, with flows and costs
- Inventory by product, location and service level
- Spend by category and supplier
- Sourcing options: make or buy, near or far, one or two suppliers
- Supplier risk and the contingency for each critical input
What your team brings
- Shipments and orders by product, site and customer
- Inventory levels and stock movements
- Purchase orders and spend by supplier and category
- Plant capacity and warehouse costs
- Supplier contracts and service records
In your report
- Exhibit 1
The network map marks the recommended change in footprint
Plants, warehouses and customers with the flows between them, and the sites to open, close or resize marked.
- Exhibit 2
Spend by category ranks the sourcing levers
Spend by category and supplier, with the sourcing lever and the savings range for each.
Where it applies
- Agriculture and food
How should we source from growers: long-term contracts, spot purchases or our own farms?
Price volatility by crop, quality and security of supply, and the capital tied up in land.
- Automotive and mobility
Should we secure battery cells through long-term contracts, a joint venture or our own production?
Cell cost and security of supply under each option, the capital required and the technology risk we take on.
- Chemicals, materials and mining
Where should we source our critical raw materials as suppliers concentrate in fewer countries?
Supply risk by material and origin, the cost of alternative suppliers and the stock we should hold.
- Public sector
Where can our state-owned water company save on purchasing within public procurement rules?
Spending by category and supplier, contract terms and the competition each tender attracts.
Start with this engagement
Write to hello@tacitude.com with the project you have in mind, and we frame the engagement with your team.