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https://deloitte.wsj.com/cio/5-supply-chain-use-cases-for-iot-blockchain-1541728929

5 Supply Chain Use Cases for IoT, Blockchain

Together, IoT and blockchain can enable end-to-end transparency, improved accountability, and a single-source-of-truth view shared by various participants—setting the stage for more effective supply chain management. To achieve such results, CIOs and supply chain leaders can work together to explore functional applications of these technologies. Here are five core use cases that use IoT and blockchain to optimize capabilities as organizations evolve their next-generation digital supply networks.

  • Product provenance tracking. With IoT, companies can better track where products (or their components) originated and share this information on the blockchain, heightening transparency and potentially improving brand perception and loyalty. For example, food distributors could provide grocery stores with additional information about product ingredients, allergens, and other details that may help consumers buy with more confidence.
  • Product journey tracking. Logistical challenges are common as items travel across the globe. For instance, shipping delays can degrade sensitive products such as medicines, wines, and fruits. Counterfeit items may even enter supply chains undetected. Using IoT and blockchain, organizations can track and share validated product location information—including concerning incidents or disruptions—far more accurately.
  • Change of ownership and custody tracking. Suppliers, manufacturers, banks, insurers, freight forwarders, third-party logistics companies, and myriad other supply chain participants play critical roles in moving goods across the globe. As IoT sensors track the physical location of goods, smart contracts on blockchain can document the transfer of ownership and custody between parties.

Digital paper. Paperwork-related shipping complications, such as falsified documents or those riddled with manual errors, can introduce supply chain delays, losses, and other risks. This is especially problematic with time-sensitive shipments of products such as dairy, medicines, and meat. IoT-generated shipping information can be uploaded directly to the blockchain, resulting in digitized paperwork and automated validation and verification.

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Quality certification. IoT-enabled manufacturing machines can capture increasingly granular metrics on production quality, deviations, and exceptions, which can help manufacturers improve and even automate quality verification and certification processes. Manufacturers can then use blockchain to share product quality metrics with supply chain stakeholders.

Contract performance. Organizations can use IoT-generated shipping and product quality information to guide predefined KPIs for their supply chain partners throughout the extended ecosystem. This can enable organizations to better measure and manage manufacturer and supplier contracts, provide more detailed feedback, and incentivize better performance. Moreover, organizations can use smart contracts to automate and simplify partner payments and other related processes based on performance.

Settlement automation. Blockchain enables direct peer-to-peer payment for goods and services, minimizing the need for banks or other such intermediaries. As such, the technology can reduce longer processing times and higher-cost clearinghouse processes for payments and invoices across borders. It can also reduce currency exchange risks by providing near-real-time settlement.

IoT and blockchain are accelerating the transition from the traditional linear supply chain to a digital supply network that can offer more transparent, instant, secure, and agile outcomes. These technologies can increase stakeholders’ operational efficiencies, speed up delivery, enhance product quality, and serve as core differentiators for organizations striving to innovate in order to satisfy customer expectations and achieve sustainable competitive advantage.

—by John Liu, managing director, and Peter Cannistraci, senior manager, Deloitte Consulting LLP; and Anant Kadiyala, director of blockchain and IoT industry solutions, Oracle

Related Content

  • “Using AI in Digital Supply Chain Network Planning”
  • “Digital Technologies Drive Supply Chain Innovation”
  • “Manufacturers Begin Move to Digital Supply Networks”

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Practice a case

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Hi everyone, 

I have an upcoming interview with Deloitte in their Supply chain consulting work. I was wondering if there may have been any suggestions for case types I should study?

From reading the forum it looks like cost reduction and operations are two to focus on. However, considering that supply chain covers a breadth of things, are there any tips or tricks on how to go about cases pertaining to supply chain? All the help I can get is greatly appreciated!

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Make sure you are familiar with SC Transformation, SC planning, Technology implications/ERP roll out, what role can data analytics play & how SC impacts customer service levels.

Feel free to write to me if you are looking for coaching. I am very familiar with Deloitte's process and have helped 10 candidates succeed in last 6 months. Remember Deloitte cases are not MBB style.

Check out this case I have published: https://www.preplounge.com/en/management-consulting-cases/candidate-led-usual-style/advanced/educateearth-digital-operations-transformation-220

All the best!

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Five ways to prioritise supply chain sustainability in 2024

As part of her appearance on edie’s recent sustainable supply chain webinars, Kimberly Rodriguez, BSI, Consultant Manager, Sustainability, outlines the five ways that businesses can ensure that supply chains are managed resiliently, with sustainability in mind.

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Take anything we use in daily life – the technology we rely on, food we eat, the clothes we wear – and it will have a complex supply chain sitting behind it. Supply chains are networks of relationships between organisations, their suppliers and all the actors and players – individuals, contractors, distributors, logistics providers, technology partners – in between. They are webs of contracts and agreements that are necessary to source, manufacture, and deliver goods and services worldwide.

The global and intricate nature of supply chains impacts everything around them, from the environment to the people involved every step of the way. According to the latest ILO estimates , more than 50 million people globally are living in conditions of modern slavery, including in global supply chains. Supply chain operations also account for over 90% of an organisation’s greenhouse gas emissions. UN Global Compact participants rank supply chain practices as the biggest challenge to improving their sustainability performance.

All this means there’s a huge opportunity for those managing supply chains to accelerate progress on sustainability goals by focusing on human rights, labour practices, and environmental impacts.

The last 12 months alone have seen increased pressure on global supply chains to address sustainability impacts. The convergence of geopolitical tensions , economic uncertainty , extreme weather events and technology-powered digital disruption , along with increasing regulatory requirements such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD), is directing organisations to focus on reducing environmental impact and improving social responsibility within their supply chains.

There are several factors organisations of all shapes and sizes can consider to prioritise supply chain sustainability in the year ahead:

  • Evolving regulation and transparency Proactively build a clear understanding of sustainability-related regulations relevant to your organisation depending on location, operations and geographic or sector-specific risks. As identified in the 2024 Supply chain risks and opportunities report , the next few years are expected to see an increase in sustainability reporting requirements, especially in the EU, including accounting for social and environmental due diligence. Organisations can get ahead by understanding the scope of these requirements and the data they will need to collect. Further to this, with Deloitte reporting that 29% of UK consumers would stop purchasing brands or products with ethical and sustainability-related concerns and over a third of people polled by SurveyMonkey saying they would buy a product that’s better for the environment over a cheaper alternative, it is evident that transparency in the steps taken by organisations wanting to improve the sustainability and ethics of their supply chain is important for commercial success.
  • Data Identify where sustainability data is held within your organisation and use it to underpin decision making to mitigate risk and progress toward a more sustainable supply chain. As set out in BSI’s report , the ability to transform raw data into actionable insights has the potential to help organisations answer today’s increasingly difficult questions and, in turn, drive cost and time efficiency.
  • Engagement With a greater focus on regulation or reporting requirements, those managing supply chains are facing greater expectation around transparency and knowledge of their wider supply chain. Organisations can get ahead by mapping, prioritising, and determine the correct level of engagements with their entire supply chain, ensuring that their business partners are meeting expectations.
  • Collaboration Change cannot be brought about in isolation. Collaboration is required internally across your organisation and externally through the supply chain. The report finds that collaboration can empower organisations seeking to open the opportunity presented by today’s supply chain challenges and that trust is the key to successful collaborative relationships.
  • Ethical Supply Chains People make supply chains function. It is important to establish controls to protect the people at the heart of the supply chains, including those that not directly employed (such as migrant workers or subcontractors) by ensuring that you are managing supplier relationships and engaging suppliers on key human rights requirements. Mapping areas of highest human rights risks, and targeting suppliers operating in these environments, can help address these issues.

Think again about that technology, food or clothing that you use in your day-to-day life. How comfortable would you be if you knew it arrived at your door having had a negative impact on the environment or the people involved at different stages of the supply chain? Ultimately, embedding sustainability in supply chains can bring enormous benefits to people and the planet, and help to accelerate progress to a fair society and a sustainable world.

Now available on-demand: edie’s free webinar on supply chain sustainability

Readers can now access an on-demand recording of edie and BSI’s recent webinar on sustainable and resilient supply chains.

Originally broadcast live on Thursday 15 February, this one-hour case study webinar was developed to help organisations of all sizes and sectors to improve management approaches across the supply chain, embedding sustainable practices and building resilience.

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How to Solve a Supply Chain Case Study Interview

  • Last Updated January, 2022

Former Accenture

People can be nervous about approaching a supply chain case study interview.

Everyone has some level of experience with marketing and sales because they see these functions in stores and advertisements every day.

The supply chain that gets the product on a store shelf (whether it’s a physical one or digital) can be more opaque.

Supply chain management is the optimization of the process of designing and creating a good or service and getting it to the customer in the most efficient way possible.

Breaking the supply chain down into its component steps will allow you to look at essential parts of the process and uncover which steps may have problems that need to be addressed to better meet customer needs.

In this article, we’ll discuss:

  • The types of business problems that fall under supply chain management,
  • Why supply chain matters,
  • Key factors to consider in a supply chain case,
  • A supply chain case example, and
  • Our 7 tips on answering a supply chain case interview question.

Let’s get started!

What Types of Business Problems Fall into Supply Chain Management?

Supply chain management includes:

  • Product development, 
  • Sourcing parts and materials, 
  • Production, 
  • Logistics, and
  • Information systems that support this process.

Each consulting firm breaks down the group of consultants who work on supply chain problems differently. Some firms put the entire process under supply chain. 

In others, “production” problems are managed by an operations practice or service line. The supply chain practice is responsible for issues like:

  • How does a company get the necessary components that go into making its product in a cost-effective and timely fashion?
  • And how does the company deliver that product to the end-customer efficiently and at the required service level?

For example, before a company can manufacture a bike, it needs tires, steel, or aluminum for the frame, the bike chain, etc. To get the finished bike to market, they need transportation to retail stores or a chain’s distribution warehouse. 

For the purpose of this article, we’ll look at the broader definition of supply chain, the entire process from getting components parts, to manufacturing the product and delivering finished goods as cheaply and efficiently as possible while meeting or exceeding service level expectations.

Nail the case & fit interview with strategies from former MBB Interviewers that have helped 89.6% of our clients pass the case interview.

Why Does the Movement of Goods To & From a Factory Matter So Much?

Moving goods to and from a factory might not seem to be the most exciting thing in the world but it’s fundamental to business success. If you can’t get your innovative new product to market so your customers can buy it, it can’t add value to your bottom line. 

From a financial perspective, there are both inbound and outbound considerations. 

Inbound considerations include:

  • Transportation costs from supplier to factory/warehouse
  • Warehousing cost 
  • Carrying cost of inventory

Outbound considerations include:

  • Transportation costs from factory to customer or store

Let’s look at these in more detail.

Transportation Cost

Transportation costs include both receiving goods from suppliers and distributing them to the customer. There are several factors to be considered when calculating transportation costs, and they may have to be weighed against other factors.

For example, is it more beneficial to use a cheaper supplier that has higher inbound transportation costs? Is it better to use a more expensive carrier service that results in a lower rate of damaged goods or quicker transit time?

Warehousing Cost

The cost of storing inventory, whether component parts or finished products, needs to be considered in effective supply chain management. Warehousing costs can be significant and can be optimized in a number of ways:

  • Only renting the storage space you need and using it efficiently.
  • Optimizing product packaging to reduce the storage space required.
  • Researching less expensive potential warehousing locations.
  • Using a multi-client facility where several businesses share the cost (if not a lot of space is required.)

It’s worth bearing in mind that, like many things in supply chain management, there may be tradeoffs. Cheaper warehousing that’s poorly connected to a company’s distribution network could end up costing you more time and money than more expensive storage that’s well connected. It’s important to optimize total supply chain costs, not each individual cost in the supply chain.

Inventory Carrying Cost

In addition to storage costs, there are several other costs associated with holding inventory. These include:

  • Capital cost . Money that’s been invested in inventory cannot be used elsewhere.
  • Insurance . Storing inventory requires insurance to cover the risk of theft or damage.
  • Risk . Products may decrease in value or become obsolete during the time they’re stored.

Similarly, from a customer service level perspective, there are both inbound and outbound considerations.

  • Factory/production cell downtime due to lack of component parts. 
  • Missed sales due to stockout at retail stores.
  • Failure to meet customer service-level expectations.

In short, inventory levels are about managing supply vs. demand. If there is a problem with inbound supply, production will slow or cease. This is highly inefficient and reduces potential product profitability. 

For example, the blockage of the Suez Canal in early 2021 due to a container ship that ran aground was expected to delay shipment of $9.6 billion in goods a day on the 150+ vessels waiting to travel through the canal according to a BBC article. These delays are expected to cost companies substantial sums due to:

  • Lost sales as customers look to competitors to purchase out-of-stock goods,
  • Production downtime at manufacturers resulting from parts shortages,
  • Higher shipping costs on ships detoured to longer, more expensive sea routes to avoid the canal, and 
  • Higher shipping costs due to a worldwide shortage of shipping containers that was exacerbated by this accident.

Key Factors to Consider in a Supply Chain Case Study Interview

A supply chain process map.

When analyzing a supply chain case, the best place to start is by mapping out the steps parts go through as they come into the factory, go through the manufacturing and quality control processes, and then are finally shipped to the customer. A process map like the one above will help you identify key steps.

Imagine yourself walking the production floor following the process the parts and end-product go through. In a supply chain case with an actual client, you’ll do this.

An effective supply chain moves the various elements seamlessly in the most efficient manner, minimizing waste and maximizing profitability. The flow of information between supplier and buyer, production, and the market should also move freely. This means it can be used to improve supply chain decisions. For example, an increase in orders at Manufacturer A will be communicated to their supplier, Company B, so that they know that they expect a larger than normal parts order and are prepared to fulfill it.

Imagine How Raw Materials Arrive at a Factory and Move Through It

  • What steps are required to get parts into inventory?
  • Where are they stored?
  • How are they moved around the factory?
  • How are they changed to outputs – single step or multiple?
  • Is there an assembly step? A quality control step?
  • How are they packaged and stored?
  • Where and how are they prepared and loaded for delivery to market?

Tip! Look for steps in the process where inventory is piling up. This may be because parts supply or production is unbalanced, reducing efficiency. Find ways to improve these bottlenecks.

Tip! Look for areas where there are significant problems with quality control. Parts or products that need to be sent back to suppliers or go through production rework are opportunities to improve efficiency and quality and, by doing so, save money.

After you have a clear understanding of the company’s supply chain, there are 4 factors you’ll want to dive deeper into to find opportunities to improve efficiency:

  • Operational considerations,
  • Financial considerations,
  • Service levels, and 
  • Matching supply and demand.

Operational Considerations

The best supply chains are highly efficient, which means they have low to minimal waste and consistently operate at optimum levels. This means that labor capacity is well-matched to production requirements.

They are also reliable with robust supplier relationships and an effective transportation solution.

Questions to Ask about Operational Efficiency

  • Product development
  • How well do we understand customer needs and use that insight to develop next-generation products?
  • How efficient are we at designing new products to meet these customer needs?
  • Is there a good split of engineering resources allocated to incremental product improvements versus next-generation product design?
  • Do we regularly review contracts for cost-savings opportunities (both for direct spend on components that go into our end-products and indirect spend on things such as travel and office supplies)?
  • Do we optimize total cost of ownership rather than individual component costs?
  • Is the production process optimized or does work-in-process accumulate behind bottlenecked resources (equipment or employees)?
  • Does the factory experience production shut-downs due to a lack of raw materials?
  • Does the factory experience unexpected equipment downtime?
  • Are employees cross-trained to minimize rework?
  • How efficient is the inbound transportation network? Are raw materials received on a just-in-time basis? How often are there stock-outs?
  • How efficient is the outbound transportation network? Are end products received by customers on time? 
  • Are there product defects or quality issues caused by transport?
  • Information systems that support this process
  • Do information systems support the exchange of data up and down the supply chain to optimize decision-making?

Financial Considerations

There are both fixed and variable costs associated with getting a product to market that should be considered.

Fixed Production Costs

Fixed costs are costs that are independent of production volume (at least over the short term) — for example, factory leasing costs.

Let’s assume a factory can produce a maximum of 10,000 units of a product a year. To lease the factory is the same price whether you produce 1 unit or 10,000 units a year. 

Fixed costs can depend on production volume only when it exceeds a threshold volume.

For example, if sales increase and the business needed to produce 15,000 units a year, the company would need to lease another factory to deal with the increased production. In this case, volume does affect a fixed cost.

Fixed costs do directly influence the cost per unit, however. The higher the utilization of the fixed production volume, the lower the cost per unit. 

For example, if the factory mentioned above costs $10,000 to lease and the factory is producing at its full capacity of 10,000 units, then the fixed cost/unit of output is $1. If the factory is only running at 50% capacity, the fixed costs/unit of output would double to $2.

Variable Production Costs

Variable costs change in proportion to production volume. For every additional unit produced, an additional $x of variable cost is incurred. Examples of variable cost items include raw materials and hourly labor costs.

There are times when rebalancing fixed and variable costs can be an opportunity for savings. For example, is it beneficial to invest in machinery or automation (fixed cost) if it reduces high labor costs? Be sure to look for opportunities like this as well as optimizing fixed and variable costs on their own.

Questions To Ask About Financial Optimization

  • How do increases and decreases in production impact fixed and variable costs?
  • Are there variable costs that fixed costs could replace?  (Example: new machinery that could reduce labor costs as well as total costs of production?)
  • Are there fixed costs that could be reduced through outsourcing? (Example: costs of leasing and managing a warehouse that could be reduced by outsourcing?)
  • Where are the biggest opportunities for financial savings?
  • How could reducing or increasing costs affect other considerations such as operational efficiency?

Service Levels

In supply chain management, the term service level has a specific meaning. It relates to how well inventory levels fulfill customer orders. A good service level is one that can fulfill customer orders without incurring a delay.

This is important because customer loyalty may decrease if products are consistently out of stock.

Questions To Ask About Service Levels

  • What are the clients’ service level expectations?
  • How often are customer orders fulfilled successfully?
  • How would changing service levels affect buyer behavior or customer retention?
  • How would changing service levels increase or decrease costs?

Supply and Demand

Effective supply chain management is about ensuring demand for the product is equaled by supply, at the lowest cost to the business.

If demand is higher than supply, customers could turn to a competitor.

If supply is higher than demand, inventory costs can reduce profit margins. Storing inventory also increases business risk as the product may decrease in value or become obsolete as it waits to reach the market.

Questions To Ask About Supply And Demand

  • What factors influence supply?
  • What factors influence demand?
  • How good is the organization at forecasting demand?
  • How flexible is the organization at changing output (e.g., are workers cross-trained for different production cells?)
  • How well are supply and demand currently balanced?
  • If they are imbalanced, what factors are contributing to this and how can those issues be fixed?

Supply Chain Case Study Interview – A Sample Question

Problem: Intel is the world’s largest manufacturer of computer chips. In 2008, Intel launched its low-cost “Atom” chip . The supply chain costs of Intel’s chips were about $5.50 a chip, which were acceptable for chips that sold for $100 each. For the Atom chips, priced at $20, these costs were too high to generate a profit.

What factors should Intel consider in order to reduce its supply chain costs, and what actions would you recommend as a priority?

Mapping the Supply Chain

Mapping out the supply chain process for Intel’s Atom chip identified several steps that had already been optimized including:

  • Raw material costs, 
  • Packaging costs, and
  • Duty payments.

It also identified that customers required a 2-week service level for receiving orders after a purchase order was submitted. 

However, the order cycle for the Atom chip was 9 weeks. Order-cycle time is the time between when a customer order is received and when the goods are shipped. High levels of inventory were required to ensure that customer service levels could be met despite the long production cycle time.

Because of this, production time/inventory was identified as the key step that had opportunities for improvement.

Identifying Opportunities to Reduce Production Time and Inventory

The process for reducing inventory required reducing the order cycle time to meet the customer’s 2-week required service level. Getting to a 2-week cycle time from a 9-week cycle time was a considerable challenge. To meet this challenge, opportunities to improve order cycle time were addressed throughout the supply chain process. 

As described above, for a supply chain case, there are 4 main factors to consider:

  • Service levels, and
  • Supply and demand.

In drilling down on this case, the following opportunities were identified:

  • Financial: Intel moved to a vendor-managed inventory model where possible to save inventory carrying costs. Vendor-managed inventory is the process of having a parts manufacturer take responsibility for holding the required amount of inventory at the customer location.  
  • Operational: The team was able to identify multiple production process improvements to reduce order cycle time, such as cutting the chip assembly test from 5 days to 2 days.
  • Service levels : As mentioned, the 2-week required service level was not flexible, providing no opportunities in this area.
  • Balancing supply and demand: Intel introduced a formal sales and operation planning process to provide better demand forecasts and time production to better meet demand.

Our 7 Tips on Answering a Supply Chain Case Interview Question

Tip 1: walk through the supply chain process.

Start by mapping out the step-by-step supply chain process.

Understanding how materials arrive from suppliers, the steps to turn them into outputs, and what’s needed to get them to market is an important first step. Once you’ve done this, look for bottlenecks or inefficiencies in the system.

Tip 2: Clarify Your Understanding of the Case 

At the start of any case study, it’s important to make sure you understand the question. This includes any information you’ve received about the case and also what you think you need to do to solve it.

A simple way to do this is to repeat back to the interviewer what you know about the case and what you believe the task to be. This gives them an early opportunity to guide your thinking if you look to be going off track.

Tip 3: Ask Questions

If you don’t understand anything, ask! Even if you feel you should know something, there’s no point wasting time worrying about it. Just ask the question and move on.

Similarly, if there are gaps in the data provided, or you need more information in order to form a hypothesis or conclusion, ask your interviewer for more detail. They may provide further information that helps you choose an approach or strengthens your analysis.

Tip 4: Take Time to Structure your Thinking

Don’t be afraid to take your time when structuring your approach to the case. 

Moments of silence can feel endless in an interview situation, but it’s better to use some extra thinking time and respond clearly and logically than answer immediately in a rushed or haphazard manner.

If you need more time to think, it’s perfectly ok to signpost that to your interviewer by asking for a little more time to organize your thoughts.

Tip 5: Use A Framework

Frameworks are popular with both candidates and interviewers alike as they bring structure to your analysis. 

Case interviews can be daunting, and anxiety can make it tricky to think things through logically. Using a framework provides an anchor to organize your thoughts around and makes it less likely you’ll leave anything out.

In supply chain cases, the supply chain process itself can often be used as your framework.

Tip 6: Share Your Analysis

Speaking of analysis, don’t be afraid to share your thoughts aloud. A case interview should be more of a conversation than an interrogation!

Remember your math teacher always telling you to show your work? The same is true in case interviews.

Explaining your thought process helps the interviewer see how you process and make connections between pieces of information. They may also point out small mistakes in your arithmetic so that they don’t mess up your conclusion.

Tip 7: Provide a Recommendation

At the end of the interview, briefly summarize the information you’ve uncovered about the case and how it’s influenced your thinking. Then clearly state your recommendation for the client’s next steps.

Make sure you also share any other important details, such as any risks associated with your recommendation and how they might be overcome.

In this article, we’ve covered:

  • Which business problems supply chain management covers,
  • The reasons supply chain management is important,
  • The essential considerations of a supply chain case,
  • An example of a supply chain case, and
  • Our top 7 tips for acing the supply chain case interview.

Still have questions?

If you have more questions about supply chain case study interview questions, leave them in the comments below. One of My Consulting Offer’s case coaches will answer them. Other people prepping for supply chain case interviews found the following pages helpful:

  • Our Complete Guide to Case Interview Prep ,
  • Case Interview Types , and
  • Case Interview Examples .

Help with Consulting Interview Prep

Thanks for turning to My Consulting Offer for advice on supply chain case study interview questions. My Consulting Offer has helped almost 85% of the people we’ve worked with to get a job in management consulting. We want you to be successful in your consulting interviews too. For example, here is how Tanya was able to get her offer from McKinsey.

4 thoughts on “How to Solve a Supply Chain Case Study Interview”

I need to do a power point for an interview. I have to do a Logistics Analyst Case Study answering questions regarding delivery data for the supply chain and I can’t seem to figure out how to go about answering the questions. I need some professional guidance to help me through the process. Thank you.

Supply chain cases are challenging.

If you’d like an overview of how to approach answering a consulting case interview, our Ultimate Guide to Case Interview Prep is your best source. If you’d like a one-on-one coach for case interviews, including learning how to case in as short as a week, you can apply here .

I would like some more information on supply chain cases – interview’s specifically but not only

Hey, Michael,

Here are a couple publically available cases that might help you: Steel Co. from the NYU Stern 2019 casebook. https://drive.google.com/drive/folders/1AImB14ysaUoYBNw-ArtoCtzZA5cADUhy S.A. Shipping from the McCombs Texas MBA Casebook 2017-2018.

Best of luck on your supply chain case prep!

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deloitte supply chain case studies

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deloitte supply chain case studies

Supply chain design and optimization for Coca-Cola HBC

Coca-Cola HBC is managing a complex portfolio of product flows in a CIS region. They sought expertise to implement logistics optimization across the region – find the best supply options, reduce the cost of goods movement and processing, calculate optimal safety stock and keep it in accordance with the demand without sacrificing service level.

deloitte supply chain case studies

Supply chain network design for a telecom provider

A major European telecom company operating a country-wide supply chain network chose Deloitte CIS to develop an optimal supply chain design. It had to match the company's future demand forecasts and inventory optimization targets while maintaining a high level of logistics service at operational sites and points of sale. Using anyLogistix, Deloitte consultants created a step-by-step roadmap of transition from the current telecom supply chain design to the target state.

deloitte supply chain case studies

Danone-Waters in Mexico improved beverage supply chain efficiency and increased production capacity

Danone-Waters in Mexico partnered with VP Consulting to increase its supply chain efficiency. They used digital optimization strategies to address capacity constraints and improve operational performance. The project resulted in a 13% increase in production capacity and a 5% cost reduction, enabling the company to achieve sustainable growth and adaptability in a dynamic market.

deloitte supply chain case studies

Digital twin for supply chain design and cost reduction

One of the leading manufacturers in the USA, ICP Group, sought the expertise of consulting firm SimWell to analyze its supply chain design and address issues related to supply chain cost reduction, transportation, and distribution. By creating a digital twin, the company has been empowered to make data-driven decisions without relying on external consultants. This enabled ICP to significantly reduce uncertainty, create a sustainable path for continuous optimization, and identify a 7% savings opportunity.

deloitte supply chain case studies

Agricultural company optimizes its supply chain costs

For over 100 years Tessenderlo Group, a €1.6B diversified industrial organization has been delivering world-class products and solutions around agriculture and bio residuals. In North America, Tessenderlo has enjoyed steady organic growth since its inception. However, with constraints in their supply chain network becoming more evident, Tessenderlo recognized transportation asset availability, accessibility of transport modes, production capacity utilization, and operating costs needed to improve.

deloitte supply chain case studies

Strategic supply chain network design for pharmaceutical distributor

Houlihan Lokey, a global investment bank with expertise in capital markets, financial restructuring, and strategic consulting was commissioned by one of North America’s leading healthcare distributors to help revitalize their distribution operations. Over the past decade, the specialty healthcare distributor had undergone substantial growth by expanding existing product lines and acquiring complementary businesses, so the current single-point manufacturing and distribution network had become stretched.

deloitte supply chain case studies

Fast moving consumer goods supply chain risk management with artificial intelligence

ITC Infotech provides technology solutions and services to enterprises all over the world, including banking, healthcare, manufacturing, and consumer goods. The latest advanced technologies are applied in their work.

deloitte supply chain case studies

UK supply chain modernization to improve logistics efficiency

Decision Lab partnered with a UK manufacturer of baked goods to perform supply chain modernization. Through developed custom features of anyLogistix, the team transformed the client's outdated Excel-based system by centralizing data and processes. As a result, they improved logistics efficiency and were better positioned to address the dynamic demands of the industry.

deloitte supply chain case studies

Logistics network design for disaster response in Indonesia

Indonesia is home to more than 500 volcanoes and is threatened by some of the greatest seismic activity in the world. Much of this activity is offshore and brings the significant added risk of tsunamis. When disasters strike, especially in remote areas of the Indonesian archipelago, existing response capacities are invariably stretched. The challenge was to find a logistics network design that would facilitate disaster relief operations.

deloitte supply chain case studies

Managing food supply chain disruptions in a public distribution system

COVID-19 negatively impacted the Public Distribution System in India by restricting both human movement and the transportation of goods. The National Institute of Industrial Engineering, now the Indian Institute of Management Mumbai, was committed to overcoming these challenges and so developed a simulation that would help manage supply chain disruptions, mitigating the effects of this pandemic as well as any future ones.

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deloitte supply chain case studies

Case Study: Transforming Supply Chains in an Endemic Era

written by Markus Geutler & Johannes Dippert & Lauren Kessler

date 02/16/2024

A leading biopharmaceutical company met the pressing demand for lifesaving COVID-19 vaccines, demonstrating their agility. Now, the move from a global pandemic to an endemic condition provides their next challenge. How can supply chain processes be transformed from a crisis-driven planning model to one that fosters stability and continuity?

From Pandemic Response to Sustainable Resilience

During the pandemic, the urgency of vaccine production necessitated rapid adjustments and a one-size-fits-all approach. Despite the unprecedented challenges, the organization achieved remarkable success in delivering vaccines to a world in need. Today, people around the globe reclaim a sense of normalcy, shedding their masks, as infection rates become more predictable and stable. With the shift to endemic status, the corporation recognized the imperative of transforming its supply chain processes. Key considerations included adapting to country-specific product requirements, ensuring long-term sustainability, and navigating evolving regulatory landscapes. In response to these challenges, CAMELOT partnered with the company to initiate a comprehensive restructuring effort.

Unifying Processes for a Global Approach

CAMELOT collaborated closely with the company’s dynamic supply chain team, leadership, and strategic partners to support a transformative journey aimed at elevating the network-wide planning process to new heights of reliability and efficiency. This endeavor encountered challenges in two key areas: processes and systems.

Establishing robust processes: The supply planning process underwent a significant transformation including the development of integrated global coordination with Contract Manufacturing Organizations (CMOs). The previous push planning model, established during the height of the pandemic with several regional variations, evolved into a globally orchestrated planning process with strengthened cross-functional communication. This transformation integrated key processes like Sales and Operations Planning (S&OP) and Sales and Operations Execution (S&OE) to navigate seasonal COVID-19 vaccine production challenges with confidence. After the expiry of a pandemic emergency authorization, country-specific stock-keeping units had to be introduced, increasing the complexity of internal and CMO operations. Prolonged governmental decisions on vaccine variants in combination with long lead times also required a refined mater data concept and governance. This comprehensive transformation aimed to unify and streamline global operations, ensuring supply chain resilience amidst ongoing uncertainty and change.

Implementing a next-level planning system: A transition away from the previously decentralized Excel-based planning approach marked a significant milestone in this project. This shift embraced a unified data approach, effectively managing the substantial volumes of data involved. This transformation was a critical enabler for a more resilient and data-driven supply chain management system.

The supply planning process redesign enabled the transition from pandemic to endemic operations. Moreover, it paved the way for the company’s sustained growth, offering stability after an exceptional period of global development. This transformation exemplifies the ability to address complex supply chain challenges and achieve remarkable results in the face of evolving circumstances.

A Process Positioned for Continued Success

The swift implementation of supply planning processes and tools proved to be a pivotal strategy for the company’s supply chain as the COVID season drew near. These forward-looking initiatives have played a vital role in effectively tackling the distinctive challenges posed by COVID-19 vaccine seasonality. Mishandling these challenges could result in production delays, jeopardizing the ability to meet the peak demand.

Figure 1: A global production and supply network was transformed while planning for the upcoming COVID-19 vaccine production season

The success achieved in this endeavor sets the stage for a promising future. The establishment of a single source of truth coupled with improved planning has significantly reduced scrap and enhanced the ability to respond well to demand fluctuations. These enhancements align seamlessly with the demands of an endemic landscape, fortifying the supply chain’s adaptability and resilience.

Furthermore, the pharmaceutical-specific benefits, such as refined shelf-life control and visibility in the S&OP and S&OE processes, alongside the transformation towards a harmonized, globally coordinated planning organization, distinguish the company’s supply chain achievements in the industry. Anticipating the introduction of new products, the processes are well-prepared for further diversification and sustained growth.

deloitte supply chain case studies

Race for Value: Towards the Digital Supply Chain

To leverage the full potential of digital supply chains, there are still challenges to overcome. This thought paper provides insights on how to drive the digital transformation of the supply chain.

deloitte supply chain case studies

Markus Geutler

Head of Supply Chain Management in the US

JDIP

Johannes Dippert

Expert in production and supply planning, with a focus on the pharmaceutical and CPG industries

deloitte supply chain case studies

Lauren Kessler

Experienced Supply Chain Consultant in the Pharmaceutical Industry

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