- 1. Business Integration Model0© 1999 Andersen Consulting
- 2. Linking the globe with real-time applications that maximize customer desires with reduced cost structures through optimized software with operations executed by both internal people and external alliance partners.
Gregory J. Owens
Former Global Managing Partner
Supply Chain Practice
March 4, 1999A Holistic Perspective:Supply Chain Management1© 1999 Andersen Consulting
- 3. The SCM pitfalls we have learned to date.Benefits from sharing sales forecasts and inventory levels are achievable but fall short of the promise
The barriers to collaboration and integration are organizational and behavioral not technological or economic - the Fear of Change
Lack of trust and integration of company practices are key obstacles2© 1999 Andersen Consulting
- 4. “The SCM Practice comprises experts in technology, processes, strategy and change management, enabling it to provide clients with cross-functional solutions.”
AMR Research Alert on Supply Chain Management
(August 1998)Successful SCM initiatives typically combine strategic and tactical change to all components of a company.TECHNOLOGYBUSINESSINTEGRATIONPEOPLEPROCESS /
OPERATIONSSTRATEGYSupplyChainManagementPractice3© 1999 Andersen Consulting
- 5. Executives should take a holistic business approach to successfully synchronize their supply chains.TECHNOLOGYSynchronized
Supply ChainPEOPLEPROCESS /
OPERATIONSSTRATEGYImplement the right enabling technologiesDevelop a synchronization strategy,
and choose the right initiativeDevelop supporting process capabilitiesRestructure and re-skill organizational relationships
4
- 6. Determine With Whom
To SynchronizeDetermine Your
Synchronization ScopeNumber of PartnersPartners’ Strategic ImportanceUpstream or Downstream Positioning of PartnersNature of RelationshipPartners’ CapabilitiesSupply Chain StructureProduct LinesCustomer PrioritiesBusiness FunctionsMarket OfferingsChannel StrategiesFirst and foremost, successful synchronization requires developing a synchronization strategy.5
- 7. Demand GenerationCompanies will then need to develop processes to support each core capability.Forecasting & FulfillmentProduct Design
Outsourcing
Materials & Capacity Synchronized Supply Chain Strategy6
- 8. Implementing the right enabling technologies is also critical to the success of synchronization.Automated business processesToday’s TechnologyERP, Y2KSingle solution legacy drivenProcess
SolutionDriversTechnology
SolutionSupply chain decision supportSupply chain integrationMultiple solution installsEmerging TechnologyAlign and IntegrateCollaborative supply chain technologyValue-based external collaborative modelsMultiple solution integrationFuture TechnologyCollaborate & Synchronize11/4/987©Andersen Consulting 1998
- 9. CommitmentInterdependentInteractive/AlignedInvestmentTransactionalUnderstandingHostileConnection/CultureSynergisticIntegrateCollaborateSynchronizedThe Journey to SynchronizationReal and Perceived Mutual Benefits8© 1999 Andersen Consulting
- 10. Supply chain organizations must be restructured and re-skilled to support these strategiesFeatures of a typical supply chain organization
Contractual relationships with customers and suppliers
Organization and management of functional activities
Functionally oriented metrics and remuneration
Mistrust between functions
Focus on functional skill buildingFeatures of a leading supply chain organization
Harness the power of business partners and alliances
Organization and management of cross functional processes
Customer focused metrics and incentives
Team approach
Development of resources with sophisticated supply chain wide understanding9© 1999 Andersen Consulting