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Challenges facing the pan-European supply chain
Discussion paper
Shanghai, December 29th, 2002
Executive summary
n Overview: The pan-European supply chain faces four major challenges: Redesign of
network, in-versus outsourcing, consolidation of supplier relationships and best practice
tendering
n Redesign of network is driven by forces outside of the supply chain. These external forces
could be, e.g., consolidation of manufacturing base or change in service requirements
n In- versus outsourcing: Outsourcing provides strategic advantages, but it does not solve the
proble
n Consolidation of supplier relationships: Trust and transparency are key for establishing
long-term partnerships with suppliers
n Best practice tendering: Insight about key performance drivers of operation will guarantee
a successful tendering process
n Benefits: Applying best practices to resolve these issues can lead to significant competitive
advantages
A.T. Kearney 70/0026_Dec29/jz 2
Overview
Four major challenges need to be mastered to establish a pan-
European supply chain
Creating a pan-European Supply Chain
3. Consolidation 4. Best practice
1. Redesign of 2. In-versus
of supplier for tendering
network outsourcing
relationship process
Main • Rationalize
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