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From the beginning efforts have been directed to improve process steps in SC. Techniques, best practices, technologies were introduced in SC. Future look at SCM will involve collaborations & technology. Industry leaders are thriving to create networked enterprise that dominate market and industry. This movement will be pioneered by a large branded nucleus firms rather than by smaller entities. The use of external resources is to achieve optimal conditions on daily basis. Network effort will expand to include activities normally left outside the scope of supply chain. It will include collaborative focus on productivity quality, and administrative issues that related to achieving optimized supply chain conditions.
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The team delivered a plan setting $500 million savings target to be achieved by 2005.
There will be merging of technology, productivity, quality, effort with an end to end focus on extended enterprise network supply chain optimization. Overall, objective was to gain market dominance through superior customer satisfaction with SC being at the enter of strategy.
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P & G also made a move in this direction to improve but it termed it as Reliability Engineering.
It applied defect and failure analysis productivity analysis, manufacturing technology to improve SC. This improved profit/savings across organization.
Blending of technology with productivity & quality improvement, end to end process improvement is the next frontier trying to optimise supply chain efforts. P & G developed operating arrangement with key customers for joint process development/management.
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Selecting a technology team to lead the efforts so the critical ingredient would be included in implementation actions.
Taking inventory of existing and planed technology initiatives so the right blending of legacy and new systems would be enabling factors and not obstacles.
Developing an institutional planning process to include:
Using a scorecard to monitor and manage allocations. Assigning a champion to drive success within each unit & function. Developing awareness and value of digital strategies and ownership at the business unit level.
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Important areas would be cost, quality productivity, asset utilization, customer satisfaction, time to market, value adding services.
Competitors will ambush wherever black siding takes place.
Solution. must be provided to the most demanding customer before competitor can.
Firms should review their current business model, strategies and capabilities & determine sufficiency of SC network.
Nucleus company works more closely with network partners sharing vital information investment.
Model must drive the firm to ward Advanced Supply Chain Management (ASCM) techniques & participate in network enterprise using collaboration & technology.
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Design partners
Creative Artists
Constraint Analysis Direct ship
Business customers C O M P T I O N
Portals
Auctions e-Procurement Network exchanges Manufacturing Demand Forecasting Supplier Relationship Management
Retailers
Nucleus Firm Cost to Serve Integrated Solutions Collaborative Planning, Fore Casting & Replenish
Partnering System
Engineering Inventory Management Logistics Warehousing provider Distribution Exchanges Internal External
Distributors Resellers
Enterprise wide planning & replenishment Full Network connectivity Network Business Management
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Constraint analyse will analysis the actual needs of the manufacturers supply chain and suppliers capabilities for the direct flow of materials.
Material are supplied to the place of consumption. Company sponsored portals, where key suppliers gain access to manufacturing schedules & make deliveries linked to codeveloped plans.
These partners will work hard to put nucleus firm ahead of competitors. CRM will finally flourish & link nucleus firm with most important business customers. CPFR will be at work with any retailer etc. Distributors & retailers will play a role in new model as they take product & services to specific markets.
responsibility
for
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Distribution Planning
Demand Adjustments
Demand Planning
On Order Inventory
Planed Orders
Distribution Planning
Orders Committed Customer Order Inventory Returns Authorization Management Planned Transfers Invoices
Credit status
Distribution Planning
Cyclical Inventories
Accounts payable
Payment Deductions
General Ledger
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Strategies Access to demand Signals Inventory tied to use Interactive Design Product collaboration Planning connectivity/ control Automated Order Mgt. Electronic payment Strategic souring Supplier Relationship Mgt. Virtual Logistics Application Systems Integration VMI Decision Support CRM
Logistics Data
EDI Schedule
BPM Shipments Enterprise Apps Data Data Applications payment Orders Servers Planning
Inventory Control
Product Selection
Strategic Payment suppliers product Nucleus Firm Delivery Business Channels Customers Of Distribution System Inventory Consumers Experience Promotions Events Prices
Tools Forecasting algorithm Online Inventory Visibility ERP-to-ERP Systems Integration e-commerce Content management B2B Integration Management Systems e-business software Standards IT fusion Event Tracking
Technology Enables e-markets for commodity supply Smart procurement for MRO & Supplies Ariba, Aspect, Commerce one Middleware Extricity Syncra Shaved Scheduling SAP, i2, Meningitis
ERP Systems SAP, Baan, JDE, People Soft Retail applications Retek CRM Data Siebel
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First tier supplier & strategic supplier will interface directly into the nucleus firms extranet, making information visible on shipment orders & products.
Payment will be transferred electronically.
Lloyd decided to process claims electronically by London. Insurance markets suing changing Software. Linking the system with a new document repository cuts the cost of processing complex industrial claims. The repository not only lets brokers, underwriters, & adjusters digitally access the information they need, it provides tools such as online chat, instant messaging video over internet protocol (IP) for real time collaboration. C.B. Richard Ellis built intranet to deliver document library to its employees. This library makes available all companies procedures manuals available at reducing costs for printing & procedures reducing costs for printing & distribution. Employees get instant access to upto data information. Employees get involved & play greater role in SC Speed pass is a radio frequency identification device. Driver uses by handling it close to receive built into gasoline pump. The driver transmits credit information & customer ID to Exxaon Mobils information network. Transaction is approved & customer pumps gas.
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IT system will be connect over an extranet designed for sharing important knowledge.
Joint data bases & direction are setup to link back end applications.
BPM technology will be at the heart of the effort as process servers are set up to use the BPM language to facilitate access to key information & its sharing across many companies. Business to business collaboration is the focus of connectivity. Global networks will become visible as BPM becomes means to connect firms.
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ebXML
Bin Talk BPML Protocols WSDL XAML
Directories BPQL LDAP DSML Process Repository BPML Org. Back End
Front End.
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The focus of supply chain effort will move from efficient processing to sensible innovations that add value across the network. Metrics, Cycle times, increased networks sales, greater customer satisfaction & retention of most valued customers. Autochoice.com is an example of new technology enabled network model. Consumer can brouse for new automobile coordinator AVIS, Bank of Scotland, Boston Consulting Group etc. providing creative collaboration.
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Customer can select a new car, finance option, can return car in 7 days & get a refund.
Siemens is also undergoing Kieretsu. Boeing Toulouse, France based Airbus, the European aircraft manufacturers are using technology as competitive weapon. Project has spent $ 48.5 million to automate procurement of material to better manage SC interactions & track performance, data on suppliers. Ariba has created Enterprise Sourcing 4.0 for buyers. It automatically creates a RFP, comparison of costs etc.
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Only few business organization have used there systems to improve supply chain performance.
Planners will be able to access what they need to improve forecast accuracy & plan closer to actual requirement. Buyers will order to match what is required to manufacture. Special shipments can be dramatically reduced.
Companies adopt business intelligence extranets. Fedex uses. Partnering companies access reports about revenue, transit time analysis & other performance data. Energy companies use such extranets to let commercial customers access power consumption data. Personalization is an other phenomena email, multimedia contacts, voice messages moving into marketing functions. Site creacted by by Dow Chemicals has improved sales.. Firms in hospitality business are trying hard to make similar achievements..
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