Based on a company’s fulfillment strategy, companies may want to develop or enhance capabilities in the following ways:
Engage in alliances or other asset-light operating models that result in more efficient operation of non-core capabilities and allow the company to focus on core areas. Partnering can allow a company to leverage the built-out capabilities of another organization and quickly enhance service offerings with limited capital investment. However, it could also result in a reliance on the others’ ability to innovate and remain relevant, which can lead to performance and competitive issues down the line.
Consider strategic acquisitions of niche capabilities or assets platforms. Being able to meet the delivery demands of customers may only continue to grow in importance regardless of the industry. In addition, acquisitions can allow companies to quickly expand access to customers and/or assets while maintaining complete control. Acquisition strategies can be considered to help keep service offerings relevant and to employ the latest capabilities.
With companies looking to specialize, building supply chain capabilities that align with customer and product requirements may require innovative solutions that are unique to a company’s product or service offering. Companies may need to invest in distribution and logistics assets that can support higher service levels while also enhancing asset utilization. While this may require a higher up-front capex investment and longer time to market, it can also improve margins in the long run and enable the company to control the build-out of its capabilities.
Last-mile capability framework
Based on a company’s capital agenda, leadership may leverage various strategies to support growth and capability development. This capability framework can help assess overall last-mile strategy to address sector and company dynamics, including product profile, order profile and seasonality/peaks, and how they impact capital deployment (buy/build) or strategic partnerships.