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Supply Chain
Roadmap for Direct-
To-Consumer (DTC)
eMobility Expansion
a
This case study will exclude upstream battery and cell
component manufacturing and product quality
Battery and Cell Component
Upstream Supply Chain
Quality
Network design
1
• eMobility solutions are on the rise globally with consumers choosing more sustainable modes of transportation
• This has lead to an increase in battery powered motorbikes, scooters and cars
• Greatest challenge comes from being able to fulfil the customer orders for direct-to-consumer business model
• New market entry for companies are great opportunities to set the foundations of an optimized distribution network and a purpose fit
distribution warehousing and servicing partners that will deliver finished goods across a country
• Fast delivery options will require certain materials / finished goods to be kept with economical order units or safety stocks
(assumption: sea shipment is one month)
• Network design should happen hand in hand with sales and operations teams, forecasting the quantity and port of entry of goods
Distribution /
Assembly Centre
Port
Pick Up
Centre
Local
Pop Up
Delivery
Customer
Manufacturer
Demand /
Channel /
SKU
Distribution
1
Commonality
Analysis
2
Accurate
Lead Time
Info
5
Service
Capacity
(Whse /
Delivery)
4
Safety
Stock /
Reorder
Trigger
3
Evaluation
Single /
Multi
Sourcing
6
*Not an exhaustive list
Decision
To establish a fast delivery for customers, we need to optimize ordering of
certain parts of the scooter, create new SKUs, order longer lead time parts in
advance and hold and possibly custom-assemble final product in the country
Wheels / Frame
Body Color
Panels
Battery
Headlight
Network design
1
Evaluation
Decision
Demand / Channel
/ SKU Distribution
Safety Stock /
Reorder Trigger
Service Capacity
(Whse / Delivery)
Commonality
Analysis
Accurate Lead
Time Info
Single / Multi
Sourcing
1
2
3
4
5
6
• Determine which sales channels will be used and
create a timeline for rollout
• Forecast finished goods SKU per sales channels and
distribution
• Decide on service level and risk appetite
• Input an input all inventory holding costs
• Decide on lost sales loaded cost
• Returns – Inventory rate
• Select the right partner for warehouse and delivery
and hub operations
• Hub and Spoke model / Owner Partner (SA states)
• Rolling logistics of 2 week vs. 4+ weeks
• Smarter sourcing decisions based on Raw Material
/ Component commonality
• Optimized vendor management to ensure ideal
sourcing network
• Establish virtual control tower through digital
adoption for order management
• Constant KPI evaluation with suppliers
• Extra battery (i.e. factor of 1.2) and accessories
(helmets, etc) common purchase evaluation
• Information fed to S&OP and link to procurement
Top Evaluation and Decision Points
1
Catch the sales
demand
Fast repeat
orders for top
sellers
Maintain a
service level
with the right
risk appetite
Time on
offer
Forecast
Predictability
Manufacturing
Complexity
Sales
Pattern
A SKUS
B SKUS
C SKUS
Fulfilment and Supply Chain Strategy for SKUs
1
SC
Strategy
High
Medium
Low
Team & high-level process
1
Sales
Channels
Freight
DC
Planning &
Ordering
• Procurement Manager
• Planner
• DC manager - Outsourced
• Logistics specialist
(Import/Export included)
• Logistics specialist
• Inventory specialist
Sales
forecast
Inventory
and order
planning
Inventory
Accuracy
Distribution
planning
Delivery
Operations
• Customer delivery specialist
• Returns manager
Top 3 Risks and how to mitigate them
2
Mitigation
• Up to date lead-times entered in the system
• Monthly catch up with key suppliers
• Accurate safety stock calculation with updated
parameters
• Spot price vs. capacity buying dynamic financial
models
• Order grouping
• Continuous bottleneck analysis with the suppliers
• Weekly team catch up
• Work with recruitment agency / local knowledge
• Outsource to the local partner
• All certifications to be collected and validated
• Company level zero-tolerance activities are routinely
communicated
• Supplier code of conduct trained and signed by
suppliers
Top Risks
• SKU or
product
shortage
(i.e. chip)
• People
leaving /
finding talent
• Sustainability,
Labor
Standards,
ESG
Monitor
• Leadtime
• OTIF
• Availability
• Turnover %
• Revenue /
person
• SCR
• Cost per hire
• Onboarding
• ESG Audits
• References
• Production
Audits
Examples of risk mitigation tools
2
On going risk assessment
Project roll out (FMEA)
KPIS Needed for monitoring for the expansion into new markets
3
People
Empowered decision
makers
• HR recommended organizational metrics
• Absence
• Personal Development metrics
• Order entry issue tracker
• Warehouse process / labor hour (pick+pack, receiving, loading)
• Last mile delivery
• Total service labour time / delivery
Process
Lean iterative
processes that can be
standardized
• On Time Delivery for each SKU to Port
• On time production schedule vs. actual performance
• In full production / Delivery (Order Accuracy)
• Transportation costs
• Warehousing costs
• Number of urgent shipments (usually air)
Technology
Enabler for a smooth
operation
• Product set up times (Standardization needed) – Measured in time
series and improvement over historical
• Issue resolution (Issue per product setup)
For Inquiries contact:
Cem Yurdum
Cem.Yurdum@gmail.com

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Emobility supply chain expansion case study

  • 1. Supply Chain Roadmap for Direct- To-Consumer (DTC) eMobility Expansion
  • 2. a This case study will exclude upstream battery and cell component manufacturing and product quality Battery and Cell Component Upstream Supply Chain Quality
  • 3. Network design 1 • eMobility solutions are on the rise globally with consumers choosing more sustainable modes of transportation • This has lead to an increase in battery powered motorbikes, scooters and cars • Greatest challenge comes from being able to fulfil the customer orders for direct-to-consumer business model • New market entry for companies are great opportunities to set the foundations of an optimized distribution network and a purpose fit distribution warehousing and servicing partners that will deliver finished goods across a country • Fast delivery options will require certain materials / finished goods to be kept with economical order units or safety stocks (assumption: sea shipment is one month) • Network design should happen hand in hand with sales and operations teams, forecasting the quantity and port of entry of goods Distribution / Assembly Centre Port Pick Up Centre Local Pop Up Delivery Customer Manufacturer Demand / Channel / SKU Distribution 1 Commonality Analysis 2 Accurate Lead Time Info 5 Service Capacity (Whse / Delivery) 4 Safety Stock / Reorder Trigger 3 Evaluation Single / Multi Sourcing 6 *Not an exhaustive list Decision
  • 4. To establish a fast delivery for customers, we need to optimize ordering of certain parts of the scooter, create new SKUs, order longer lead time parts in advance and hold and possibly custom-assemble final product in the country Wheels / Frame Body Color Panels Battery Headlight Network design 1
  • 5. Evaluation Decision Demand / Channel / SKU Distribution Safety Stock / Reorder Trigger Service Capacity (Whse / Delivery) Commonality Analysis Accurate Lead Time Info Single / Multi Sourcing 1 2 3 4 5 6 • Determine which sales channels will be used and create a timeline for rollout • Forecast finished goods SKU per sales channels and distribution • Decide on service level and risk appetite • Input an input all inventory holding costs • Decide on lost sales loaded cost • Returns – Inventory rate • Select the right partner for warehouse and delivery and hub operations • Hub and Spoke model / Owner Partner (SA states) • Rolling logistics of 2 week vs. 4+ weeks • Smarter sourcing decisions based on Raw Material / Component commonality • Optimized vendor management to ensure ideal sourcing network • Establish virtual control tower through digital adoption for order management • Constant KPI evaluation with suppliers • Extra battery (i.e. factor of 1.2) and accessories (helmets, etc) common purchase evaluation • Information fed to S&OP and link to procurement Top Evaluation and Decision Points 1
  • 6. Catch the sales demand Fast repeat orders for top sellers Maintain a service level with the right risk appetite Time on offer Forecast Predictability Manufacturing Complexity Sales Pattern A SKUS B SKUS C SKUS Fulfilment and Supply Chain Strategy for SKUs 1 SC Strategy High Medium Low
  • 7. Team & high-level process 1 Sales Channels Freight DC Planning & Ordering • Procurement Manager • Planner • DC manager - Outsourced • Logistics specialist (Import/Export included) • Logistics specialist • Inventory specialist Sales forecast Inventory and order planning Inventory Accuracy Distribution planning Delivery Operations • Customer delivery specialist • Returns manager
  • 8. Top 3 Risks and how to mitigate them 2 Mitigation • Up to date lead-times entered in the system • Monthly catch up with key suppliers • Accurate safety stock calculation with updated parameters • Spot price vs. capacity buying dynamic financial models • Order grouping • Continuous bottleneck analysis with the suppliers • Weekly team catch up • Work with recruitment agency / local knowledge • Outsource to the local partner • All certifications to be collected and validated • Company level zero-tolerance activities are routinely communicated • Supplier code of conduct trained and signed by suppliers Top Risks • SKU or product shortage (i.e. chip) • People leaving / finding talent • Sustainability, Labor Standards, ESG Monitor • Leadtime • OTIF • Availability • Turnover % • Revenue / person • SCR • Cost per hire • Onboarding • ESG Audits • References • Production Audits
  • 9. Examples of risk mitigation tools 2 On going risk assessment Project roll out (FMEA)
  • 10. KPIS Needed for monitoring for the expansion into new markets 3 People Empowered decision makers • HR recommended organizational metrics • Absence • Personal Development metrics • Order entry issue tracker • Warehouse process / labor hour (pick+pack, receiving, loading) • Last mile delivery • Total service labour time / delivery Process Lean iterative processes that can be standardized • On Time Delivery for each SKU to Port • On time production schedule vs. actual performance • In full production / Delivery (Order Accuracy) • Transportation costs • Warehousing costs • Number of urgent shipments (usually air) Technology Enabler for a smooth operation • Product set up times (Standardization needed) – Measured in time series and improvement over historical • Issue resolution (Issue per product setup)
  • 11. For Inquiries contact: Cem Yurdum Cem.Yurdum@gmail.com