Tailored Supply Chain

“The Tailored Supply Chain” … A NEW ERA … : Nunner has the Know How !!
A general worldwide survey questionnaire, which is held by several multinationals and consultancy offices, showed that the current servicelevels provided by company’s to their customers can be improved. The theoretical and field research we have done has shown the increasing expectations of customers about the service and delivery options. Research shows that the traditional supply chain approach is not sufficient anymore to offer a proper and efficient way to meet the extensive expectations of customer service. It was also realized that company’s should look more from the ‘outside of the company to the inside of the company’ to meet customer expectations.

tailored supply chain

Based on the philosophy of Dr. Gattorna, called “Dynamic Supply Chains”, customers should be segmented based on their buying behavior and specific buying preferences. Each customer segment is linked with the delivery models Make-To-Stock, Make-to-Order, Configure-to-Order and Engineer-to-Order.

Source: Paradigm, ‘Best of both World’s strategy’ Gattorna (2010)

The four delivery models show the optimal way in which customer groups can be best supported. One of Nunner’s manager studied during his MBA thesis additional literature and did a lot of field research on it. During his study he was supported by Dr. John Gattorna himself, which makes that Nunner has nowadays the know-how inhouse about how to utilize the philosophy and about how to create an actual implementation plan and make the philosophy operational.

To achieve a successful implementation it is important that company’s start with drawing up a customer / product combination as part of the customer segmentation and create specific buying preferences. By using Cost-to-Serve and Margin-to-Serve in the right way company’s can comprehend the costs and returns per customer / product combination.

Using Cost-to-Serve and Margin-to-Serve makes company’s better able to take the right financial decisions depending on the desired combination of product and service. In most cases company’s are wise to include service as a cost element in their catalogue for a complete transparency of the costs for the desired service.

Nunner started to assist some of our existing clients with implementing the Tailored Supply Chain model as part of their strategy to meet customer needs with less logistical costs. Our clients experiencing our actual delivery services as an extension of their business where they achieved more satisfied end customers.

If you want to learn more about it, just contact us at tailoredsuppychain@nunner-logistics.com