BCG
some capacities to a certain market , it will do this to our inventory . It will do this to our overall EBITDA . It will do this to our overall costs . And then we have a second scenario where we probably have a different success profile , maybe less inventory , less cost , but then also a little bit less margin because it ' s lower margin products or lower margin markets .
“ And now there are two difficulties . The first one is that obviously , there are millions of potential scenarios that we can play through to theoretically , practically not , but theoretically , because there are so many permutations of opportunities in complex supply chains . That ' s the first one . And the second difficulty is , putting values behind the trade-offs is inherently difficult because the link to the finance function very often in supply chains is underdeveloped . This makes evaluating potential impacts on supply chain KPIs in financial terms or the possible EBITDA impact of a certain decision , for example , relatively difficult .
“ Those two points , struggling to find meaningful scenarios to discuss in an IBP process and then having a sound and agreed upon method for determining the financial implications of scenarios in place , make it difficult to make rational decisions . And that ' s another imperative I think , for us to work towards being better at defining and financially evaluating scenarios .”
In terms of the scenario or what-if building , is there a new technology that can help with that ? “ More integrated systems are coming to the market . And again , I ' m not saying that the system resolves anything standalone , but
498 June 2021