End- to End Supply Chain's higher potential

The E2E (End-to End) supply chain is made up of multiple companies, each of which carries out its own supply chain processes — plan, buy, make, move, distribute and sell — and as costs are incurred or allocated, they add up to the TDC (Total Delivered Cost). Operating independently, each company seeks to maximize its margins, but if all operate in harmony with common goals, based on a “single version of the truth,” then the overall TDC can be optimized. The same goes for other value drivers, such as total supply chain time, working capital efficiency and economic profit.

The recognition that E2E supply chains exist, but that trading partners work to optimize their own businesses instead of the whole, isn’t new. Business leaders have realized this for years, and as supply chains became increasingly global, vertical integration grew too costly. Offshore contract manufacturers, co-packers and suppliers offered lower materials or product costs that couldn’t be ignored. The synergism and benefits of common goals and “distributed value” were considered too complex, too challenging and not possible because of the lack of real-time, reliable data.

Over the past 30-plus years, we’ve seen supply chains evolve from cost centers to the recognition of E2E’s potential. Achieving synergistic E2E chains enables organizations to become profit centers and important contributors to enterprise value. This is true for all trading partners in the E2E chain. As supply chains and economies continue to evolve, it’s critical to focus on the E2E chain and distribute the higher value and benefits to all trading partners and providers.

Source: https://www.supplychainbrain.com/blogs/1-think-tank/post/33347-achieving-synergy-in-the-end-to-end-supply-chain