End-to-end supply chain management (E2E) is a comprehensive concept that strives for an efficient supply chain from a holistic point of view, considering all elements that influence the efficiency of the supply chain.
Supply chain management typically aims for a continuous and efficient process chain through planning, procurement, production, warehousing, distribution and customer service. E2E complements this dimension by incorporating the interfaces of supply chain management with other business units into supply chain management. This starts 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, retrologistics and recycling.
The aim of E2E is not to subordinate all product aspects to the requirements of an efficient supply chain, but to achieve the highest possible overall efficiency of value creation.
Economic advantages resulting from the “egoistic” consideration of one department must not be cancelled out by resulting economic disadvantages elsewhere. Since in practice economic concerns of purchasing, production and sales are currently still mostly in the foreground without considering the resulting costs for the supply chain, E2E strives to counteract this.
Our hint:
It is worthwhile to raise and use the considerable optimisation potential 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 change hats and consider the following: What would solutions look like and what decisions would have to be taken if the goal was to achieve the most efficient and effective supply chain possible?
Some of the ideas developed in this way would optimise supply chain management at the expense of other areas and thus only turn the tables. But you will also arrive at ideas that can be realised without disadvantages for other corporate goals and presumably find approaches to a trade-off between the goals of different corporate functions that should be discussed in the interest of overall efficiency.
