Supply REBMs process




By the end of this stage you will have:

  • A detailed business case for your business model proposition.

How to guide

Step One

Develop your outline proposition with the project team into a detailed business case that takes into account all departments and external stakeholders that are involved.

The detailed business case should cover:

  • market analysis – price and demand, channels to market, focus groups reaction, consumer reaction to similar models;
  • customer journey – including customer experience and marketing;
  • operations;
  • IT;
  • logistics and supply chain – considering product returns experience;
  • financials – income, return on investment and net present value;
  • metrics – financial and resource savings; and
  • margins on new products and the spilt between suppliers.

The detailed business case should cover both the pilot and roll out phases including the different options that could be implemented. An appropriate pilot should be identified early on and include resourcing, timescales, location and criteria on which to take a roll out decision.

Step Two

Alongside the detailed business case it is important to develop your outline proposition further looking at pricing, operations, marketing and route to market.

Step Three

It is important to introduce sensitivities into the detailed business case to understand the impact of changes to the model especially where theoretical data has been used. Examples of sensitivities that should be considered are level of market penetration, operating costs, pricing and impact on pre-pilot sales.

Step Four

The information above should be collated in an appropriate format to be presented to company decision makers, demonstrating the business and investment case for the models, pilot and outline trial and roll-out opportunities. Where data is not available, it is important to include educated assumptions that can be tested in the pilot.

Step Five

Your company should develop and agree commercial, financial, customer, marketing and resource based evaluation metrics which can be reviewed, analysed and collated throughout the pilot and then throughout the life of the rolled-out business model.