Value Chain & Operations

Service & Supply strategy

Establish product and channel service levels and define the ideal MTS/MTO mix that delivers market strategy

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How

SHAiPE: the LTPlabs framework

Set the Decision
- Define commercial priorities
  which products, channels, and customer segments to differentiate
- Align on strategic priorities amongst commercial, supply chain and finance teams
  service level vs. cost to serve
Highlight what matters
- Map current baseline and performance gaps
  Service level/OTIF, OEE, inventory
- Establish ideal cost-to-serve vs. margin by segment
  product, segment, market segment
- Define constraints
  capacity, lead times, MOQs, safety stock rules
- Align success metrics
  service level, inventory rotation, OEE, cost-to-serve
Augment with AI
- Simulate service costs trade-offs across MTS, MTO, and hybrid strategies to prescribe the optimal supply mode per SKU × segment
- Data
  Historical demand
  Throughputs and setups
  Market strategy
  Current inventory
  AI Model
  Results
  Expected OTIF service level
  Production resources usage
  Inventory evolution
Prototype your solution
- Run digital-twin tests against historical performance to calibrate
- Build a scenario generation interface allowing supply chain leadership to test and validate service/cost trade-offs
- Pilot with a subset of segments / channels to real life validation
Expand to scale
- Define the implementation plan, with tight control of
- Link ERP-like systems to upstream & downstream integration
- Train supply chain and commercial teams on the new process
- Establish review cadence aligned with S&OP cycles
- Monitor KPIs continuously and refine segmentation as market dynamics evolve

Nutshell

What this means for your business

cost to serve

Higher service level (OTIF / fill rate) where it matters most, without increasing the cost to serve
Reduction in working capital by eliminating MTS overstock on low-demand, low-margin SKUs
Supply strategy aligned with commercial segmentation; every service level decision anchored on company strategy

Insights