TheeCommerceofSupplyChainManagement©1999AndersenConsulting2“OldWorld”versus“NewWorld”‘NewWorld’‘OldWorld’•Batched,timebasedplanningsystems•Discretecompanies/geographies•Multiplesupplychainprocesses•Sequential,dependentplanning(i.e.forecast,inv.Planning,DRP,MPS,MRP•DataIntegrityproblems•Knowledgeaspower•Organisationsplitbygeography•Inputdrivendecisions(notmarketoriented)•Littlesharingofdemandinformation•Poorintegrationofcustomersandsuppliers•Smallchangesrequiremajorrework•Individualcompanystandards•Multiplecompanydata/productcodes•Skillinflexibilityatcentre•Tightintegrationofcustomersandsuppliers•Breakdownofbarriersoftimeandspace•Processconsistencyinandacrossorganisations•Dataintegrityandvisibilityacrosssupplychain•Knowledgecollaboration•Alliancesenabledtocreatevalue•Commonpackagedsystemswithvendorprovidingalotofintegration•Rapidimplementationcapability•Rapidre-synchronizationcapability•Reworkisolatedtopartialelementsofplan•Standardcommunicationinfrastructureandprotocol•Crossindustrystandards•Commondata/productcodes•Capabilitytoshiftskills©1999AndersenConsulting3TechnologyInnovationshaveenablednewSCMstrategies.Technologyinnovationsarekeyenablersofnewsupplychainstrategies•Sophisticatedsoftwarepackagesthatprovidethefollowingcapabilities:•Sophisticatedforecastingalgorithms•Highlyreactivescenarioplanningcapabilities•Planningforrealworldconstraintsandpriorities•Optimizationlogictoplansupplychainactivities•Rapidcustomerconfigurationandpromising•Informationintegrationacrossmultiplesupplychainactivitiesandotherbusinesssystems•UseoftheInternetasanopenarchitectureforbusiness-to-businesscollaboration•Extendedenterprisetechnologythatenablessynchronizationacrosssupplychains©1999AndersenConsulting4SupplyChainStrategyBusinessStrategyAlignmentEnables(newview)Drives(oldview)InternethasenableSupplyChainPlayersto:•Changetherulesofthegame•Harnessthepowerofbusinesspartners&alliances•Fullyexploitthecurrentgame:ItwillchangequicklyWithintechnologyinnovations,InternethasthemoststrategicandsignificantimpactsonSupplyChainManagement.©1999AndersenConsulting5GrowthofBusinesstoBusinesseCommerceBusinesstobusinesseCommerce:MassivegrowthisforecastedCiscocurrently20%ofbusinesstobusinesseCommerceWhereisthegrowthgoingtocomefrom?Whowillsecurethevalue?(existingornewmultinationals?)010020030040050060070080090019981999200020012002MassiveGrowthforecastedinBusinesstoBusinesseCommerce$bnSource:ForresterResearchTheInternethasgivenmelotsofpossibilitiesthatIhaven’thadbeforefromaspeed-to-marketstandpoint.---ThomasRehkopf,Bellsouth©1999AndersenConsulting6Example:On-lineRetailElectronicsSalesGrowthSource,ForresterResearch,Inc.©1999AndersenConsulting7TheimpactoftheInternetwillspanforward.Itisnotaboutjusttakingordersontheinternetbutratheraboutanewavenueforestablishingrelationshipswithsuppliers,customers,channelpartners,andotherstakeholders.–EdMathenyInnovators1996EarlyAdoptors1997–98EarlyMajority1999–00LateMajority2002–02Laggards2002+StrategicObjectiveValueAddedCostSavingsTechnicalNecessityChannelForeclosure©1999AndersenConsulting8LevelsofAwareness-IntegrationSuppliers’SupplierSupplierCustomerManufacturerCustomer’sCustomerIntegration•LessInventory•Inventoryconsolidation•GreaterAlignmentofFunctions•IncreasedAlignmentbetweencompanies©1999AndersenConsulting9L...
