Given the volatility in economic markets, the on-going credit crisis, and a $765 billion working capital problem in manufacturing, companies have to embrace concepts such as achieving the perfect order, controlling value chain expense, and generating free cash flow.
The days of "pilot" Lean initiatives, subpar attempts at the visions of "waste reduction" and "improved efficiency" have left stale tastes in some executive suites, because free cash flow often sees little change. Today, only a comprehensive strategy that can produce viable and sustainable results will allow companies to survive.
DemandPoint provides insight on how companies must address cash, how manufacturers and distributors of goods are changing the way they look at their business, and how to approach and drive change throughout the organization.
The Value chain and order-to-cash cycles
A value chain covers the life span of a company product from resources received from suppliers, to production facilities, to distribution, to customer delivery. We help companies in strategy deployment, make/buy recommendations, vertical integration strategies, outsourcing, in-sourcing, costing system alignment, and value chain network design. DemandPoint Value Chain Solutions enable a business to align the overall value chain and fulfillment cycle to the new responsiveness and flexibility of the factory.
Addressing each of these areas in an integrated manner enables companies to develop a systematic process of fulfilling orders and optimizing order-to-cash cycles. The end result is a complete and comprehensive approach to realize the most competitive and profitable position in your given market or industry.
Demand Flow Fulfillment
One of the foundational elements of DemandPoint's value chain solutions is "Demand Flow Fulfillment" (DFF). DFF gives companies to internal information, understanding and tools necessary to address and optimize the following key areas:
- Understanding forecasting
- Merchandising and selling through ties
- Customer Integration
- Order path execution
- Cash-to-cash process
- Demand-driven replenishment and supply integration
- Link and synch
- True capacity and capability with PAR (Position, Action and Response)
Rooted in Demand Flow principles, DFF bridges the gap between an enterprise’s business model and its operating platform. This bridge establishes the driving framework of the company’s order-to-cash process. DFF centers around helping companies with: (1) Perfect Order Drivers; (2) Value Chain Expense Controls; and (3) Cash Conversion Cycles and Free Cash Flow.