TheSupplyChainManagementAnalysis©1999AndersenConsulting2TheStrategicAlignmentModelInformationEnablers&DriversTheMarketStrategicResponseCulturalCapabilityLeadershipLeadershipStyleVisionOrganizationOptionsChangeManagementChannelStrategySupplyChainConfigurationOperations&DistributionCreatingCustomerValueIntegratingSupplywithDemandExecutionofStrategyFormulationofStrategyRulesoftheGamePlayingtheGameInternalCapabilitiesShaping&Creating“StrategicSupplyChainAlignment”,editedbyJohnGattorna©AndersenConsulting19983Themostsuccessfulsupplychainswillbethosethatfollowthepathtosynchronization.From...ToDoityourselfHoardinformationFocusonwhatneedstogetdoneCollaborateShareinformationFocusonwheretocreatevalueTherearefourstepsonthepathtosynchronization.EvolutionofSuccessfulSupplyChains©AndersenConsulting19984SupplyChainStrategyBusinessStrategyAlignmentIntegrateCollaborateSynchronizeAlignFirst,alignyourcompany’ssupplychainandbusinessstrategies.Alignmentisachievedwhenthereisconsistencybetweenacompany'sbusinessstrategyandsupplychainstrategy.Enables(newview)Drives(oldview)©AndersenConsulting19985Integrationisthecoordinationofsupplychainactivitieswithinthebusiness.Then,coordinatesupplychainactivitieswithinyourenterprise.IntegrateCollaborateSynchronizeAlignCustomersSupplierManufacturerContractManufacturerWholesalerorDistributorRetailerorDealerConsumerChannel©1999AndersenConsulting6Collaborationisthecoordinationofsupplychainactivitiesbetweenbusinesses.Next,collaboratewithsupplychainpartnerstogainefficienciesbetweenbusinesses.IntegrateCollaborateSynchronizeAlignCustomersSupplierManufacturerContractManufacturerWholesalerorDistributorRetailerorDealerConsumerChannel©AndersenConsulting19987Synchronizationistheplanningandexecutionofsupplychainactivitiesacrossthesupplychain.Finally,synchronizeactivitiesacrossyourentiresupplychaininordertocompeteagainstothersupplychains.IntegrateCollaborateSynchronizeAlignCustomersSupplierManufacturerContractManufacturerWholesalerorDistributorRetailerorDealerConsumerChannel©AndersenConsulting19988Real-timedemandforecastsandresponsivefulfillmentcreatevalueinsynchronizedsupplychains.ManageswithminimalinventoryUsesreal-timedemandtodriveoperationsReliesondeliveryoftherightquantityjust-in-timeCapturesandusesreal-timedemandAbletopurchaseatlaunchOrderfulfillmentexpectationsaremetAbletodelivertherightquantityjust-in-timeUsesreal-timedemandtodriveoperationsNolargepriceprotectionlossesAlignsWallStreet’sandcustomers’expectationsManufacturerWholesalerorDistributorRetailerorDealerConsumerSupplierContractManufacturer©1999AndersenConsulting9SupplyChainSynchronizationActivitiesConfigurationConfigurationStrategicBusinesstoBusinessJointCapacityInvestmentPlanningPlanningTacticalBusinesstoBusinessCollaborativeSupplyChainPlanningExecutionExecutionOperationalBusinesstoConsumersBusinesstoBusinessEDIWebOrderenterWebDataFeedsFromSuppliers,CustomersWebProcurementBuyBuyMakeMakeMoveMoveSellSellSupplierCustomer©1999AndersenConsulting10WinningwithSupplyChainSynchronizationLeadingcompaniesrecognizethevalueofsynchronization“Mostimportant,thedirectmodelhasallowedustoleverageourrelationshipswithbothsuppliersandcustomerstosuchanextentthatIbelieveit’sfairtothinkofourcompaniesasbeingvirtuallyintegrated.”MichaelDell,HarvardBusinessReviewInterview,April1998“Customersareseekingwhattheyconsiderastrategicpartnertodeliverend-to-endnetworkingsolutionstoreducecosts,integrationefforts,andbusinessrisk.Ciscoanditspartnersaresuccessfullycapitalizingonthistrend.”TechnologyBusinessReview,ThirdQuarter1998“Wehavedemonstratedwithourpartnersthatwecanknockdownthetraditionalwallsbetweentheretailerandmanufacturer,thewallsbetweencompanies,wallsbetweenfunctions,departmentsandeveninternationalborders.JoeMasse,Vice-President,WarnerLambert,CDDNInterview,October1998“Byoptimizingthesupplychain,weallwin.”IntelCustomer,CIOMagazine,August1998