End-to-end supply chain management (E2E) is a comprehensive concept that aims to achieve an efficient supply chain from a holistic perspective, taking into account all elements that influence the efficiency of the supply chain.

Supply chain management usually strives for a continuous and efficient process chain through planning, procurement, production, warehousing, distribution and customer service. E2E complements this dimension by incorporating the interfaces between supply chain management and other areas of the company into supply chain management. This begins with a product design that enables an efficient supply chain, influences the design of the product portfolio from a supply chain perspective and also takes into account the requirements of repair, return logistics and recycling.

The aim of E2E is not to subject all product aspects to the requirements of an efficient supply chain, but to achieve the highest possible overall efficiency in value creation.

Economic advantages resulting from the “selfish” consideration of a specialist area must not be negated by resulting economic disadvantages elsewhere. As in practice, the focus is currently still mostly on the economic concerns of purchasing, production and sales, without taking into account the resulting costs for the supply chain, E2E aims to counteract this.

Our tip:

It is worth leveraging and utilizing the considerable potential for optimization at the interfaces between supply chain management and other operational functions.

Ideas in the areas of product management, product design and construction, purchasing, production and distribution can be found quickly if you mentally switch hats and consider the following: What would solutions look like and what decisions would have to be made if the focus was on achieving the most efficient and effective supply chain possible?

Some of the ideas developed in this way would optimize supply chain management at the expense of other areas and thus only turn the tables. However, they will also arrive at ideas that can be realized without disadvantages for other corporate goals and will probably find approaches for a trade-off between the goals of different corporate functions, which should be discussed in the interest of overall efficiency.

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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