IS YOUR SUPPLY CHAIN
TOO COMPLEX?
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FREJA 4PL SERVICESPREPARED BY
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A large number of suppliers adds complexity to each Supply Chain Drivers, hencethe value of local expertise and local awareness is made inefficient due tocomplex processing. The law of large numbers describes how more volumefocused on fewer subjects will decrease variance and the standard deviation.Thus we believe that simplicity will enable improvements and enhancedsynchronization of the supply chain.
"With fewer moving parts you have less friction, wear and noise, which could extend life ofengine. The same is true for organizations. Think of every step in a process, every
requirement for approval, every level on the org chart, and every product as a moving part.” - Dr. Bassem Ramadan, Kettering University
By reducing the number of suppliers, you can decrease the complexity of your supplychain. Complexity Reduction is used to:
Identify and strengthen core capabilitiesBuild the business around customer needsCreate a disciplined approach to releasing new products or services and trimmingthose that customers no longer valueDesign an organizational structure to support critical decisionsMaximize process efficiencyAlign information systems with business objectives
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COMPLEXITY - PROS & CONS
Increasing Complexity Decreasing Complexity
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Initiate an analysis to identify your pros andcons associated with a change of networkstructure. FREJA's 4PL service offers to map and analyzenetwork opportunities from a neutral pointof view.Our perspective is visualized by the statedtriangle, meaning that we approach themarket based on requirement specificationsfrom the 1PL.The 4PL service optimizes supply chainrelated functions through the extensivenetwork of 2PL and 3PL companies –searching for the right fit between yourdemands as a 1PL and the combinedofferings made by various 2PL and 3PLcompanies.
GET STARTED
Contact FREJA's Head of Digital & Innovation, Kenneth Sandgaard, [email protected] or on +45 9670 5360 for more information.