Supply Chain Strategy & Operating Model
Before any optimization, an organization has to decide whether its supply chain competes on cost, speed, or flexibility. That single decision shapes every choice that follows.
What We See
Supply chain strategy disconnected from business strategy
The supply chain function sets its own operational goals (cost reduction, faster delivery) without deriving them from the company's competitive strategy. The result is local optimization that sometimes runs directly against the business's actual direction.
Operating model built for the organization's previous scale
Decision structures, approval layers, and the division of responsibility between units are often leftovers from a period when the organization was smaller or simpler. As it grows, that same structure becomes the bottleneck.
Centralize-vs-decentralize was never a deliberate call
In many multi-subsidiary industrial groups, whether procurement, planning, or warehousing should be centralized at group level or stay independent per subsidiary was never explicitly decided — it just accumulated by habit over time.
Success metrics conflict across units
Sales is measured on order fill rate, production on line efficiency, procurement on purchase price. Each metric is reasonable on its own; without alignment, each unit ends up working against the others.
Our Approach (The DDIT Framework)
Diagnose
Re-reading the organization's competitive strategy (cost, speed, variety, quality) and comparing it against the performance metrics the supply chain function actually chases. This comparison is often the first time the mismatch becomes visible.
Design
Designing the operating model (centralized, decentralized, or hybrid) to fit the organization's ownership structure and geographic footprint, along with a RACI decision map for key supply chain decisions.
Implement
Rolling out the new model gradually — typically starting with one unit or one decision category (strategic procurement, for instance) before extending it across the full structure.
Transfer Capability
Documenting the decision logic (why this model, not another) so that when the organization hits its next growth stage, the internal team knows how to re-evaluate the model itself.
Deliverables
- Business-strategy-to-supply-chain-goals alignment map
- Operating model design (centralized/decentralized/hybrid) with written rationale
- RACI matrix for key supply chain decisions
- Unified performance-metric framework across sales, production, and procurement
- Phased implementation roadmap for the new model
- Current-state structure maturity assessment
Engagement Models
Diagnostic Sprint
A two-to-three-week review of the current strategy to surface the main misalignments, with no commitment to a large-scale project.
Full Transformation
A full redesign of the operating model, with hands-on support through its gradual rollout over several months.
Ongoing Advisory
Periodic advisory support to the board or CEO on structural supply chain decisions, without a full-time project presence.
Who This Is For
For multi-subsidiary industrial groups, organizations that have recently gone through rapid growth or a merger, or companies whose board is revisiting overall competitive strategy and wants the supply chain aligned with it.
Frequently Asked Questions
Strategy and operating model design defines the long-term decision structure (who decides what, against which metric). S&OP/IBP is the monthly execution cycle for those same decisions. The operating model is usually settled first, then the S&OP cycle runs on top of it.
Not necessarily. In many cases the issue isn't the formal reporting structure but the lack of agreement on who owns which decision. Sometimes that's solved by clarifying RACI, without touching the org chart at all.
Yes, though the scope is smaller. Even a single factory with multiple production lines can have ambiguity between centralized decisions (shared raw material procurement) and decentralized ones (per-line scheduling).
Both. The written output (operating model map and RACI) is the foundation, but the implementation stage includes real changes to how decision meetings and reporting actually happen — not just a file sitting on the CEO's desk.
Structural changes typically show results later than operational ones (like an MRP tool) — it usually takes two to three decision cycles (quarterly or monthly) before the real effect of the new alignment shows up in performance.
Ready to talk about this domain?
Tell us about your organization's specific challenge, and we'll recommend the right engagement model.