TheSupplyChainManagementTrends©1999AndersenConsulting2FourKeyTrendsinSupplyChainManagement•Supplychaindesignandoperationwilldrivecorporatestrategyandshareholdervalue•Corporationswillcollaboratewithsupplychainpartnersandsynchronizeoperations•Technologywillbeakeyenablerofinnovativesupplychainstrategy•Supplychainorganizationswillberestructuredandre-skilledtoachievethesegoals©AndersenConsulting19983Industryleaderswillfocusonfivecorecapabilitiestocreatevalueintheirsynchronizedsupplychains.Forecasting&FulfillmentReal-timedemandforecastsandresponsivefulfillmentcreatevalueMultipleforecastsandunreliablefulfillmentcreatebullwhipProductDesignPartnerscollaborateondesigntostaycompetitiveDesigndecisionsaremadesolotostaycompetitiveCustomerdatausedacrossthesupplychaintodriveinnovationDemandGenerationCoreCapabilityToday’sSituationCustomerdatanotcapturedorutilizedTheSynchronizedFuture©AndersenConsulting19984Industryleaderswillfocusonfivecorecapabilitiestocreatevalueintheirsynchronizedsupplychains.Materials&CapacityPlanningMaterialallocationisanexception;capacityplannedbasedonreal-timedemandMaterialallocationisthenorm;capacityplannedtomeetWallStreet’sexpectationsFullvisibilitytodecisionsupportdataandperformancemeasuresOutsourcingCoreCapabilityToday’sSituationPoorvisibilitytodecisionsupportdataandperformancemeasuresTheSynchronizedFuture©1999AndersenConsulting5Manu-facturerTier2SuppliersTier1SuppliersWholesalerorDistributorRetailerorDealerConsumersIntegrate…withinthefirmCollaborate…betweencompaniesSynchronize…acrossthesupplychaineSupplyChain–DefiningSynchronizationChannelCustomersTheSupplyChainParticipants©1999AndersenConsulting6InterdependentSupplyChainvs.SupplyChainHostileorTransactionalCompanyvs.CompanyInteractive/AlignedAlliancevs.AllianceeSupplyChain–PartnerRelationshipsSynchronizeIntegrateCollaborate©1999AndersenConsulting7Speed“Intelligent”InformationBandwidthXML(ExtensibleMarkupLanguage)“Common”InformationConnectInternallyERPSoftwareLANsConnectExternally“Fluid”InformationDynamicSolutionsWorldwideWebMiddlewareOptimizationSynchronizeIntegrateCollaborateeSupplyChain–EnablingTechnologies©1999AndersenConsulting8SynchronizeMonitorCrossSupplyChainFinancialsTBDOperations,Financials&HumanResourceseProcurementSales&MarketingSAP,Oracle,PeopleSoft,BaanAribaSeibelConnectOptimizeContentExtricity,FrontecSterlingCommercei2,Manugistics,SAPAPOAspectDev’l.,InPartSynchronizeIntegrateCollaborateeSupplyChain–SoftwareTools(NotACompleteList)TBD©1999AndersenConsulting9PlayingtheNewGameSupplyChainvs.SupplyChainTheOldGameCompanyvs.CompanyLearningtheNewRulesAlliancevs.AllianceSynchronizeIntegrateCollaborateeSupplyChain–BasisofCompetitionSonyPanasonicWalmartDell,FedexMicrosoft©1999AndersenConsulting10HowDoWeExecuteThis…Fast?CompetitiveAdvantageSpeedExecutionHowDoWeMakeOurERPInvestmentPayOff?GreaterRevenueLowerCostsFewerAssetsWhat’sOurSupplyChainStrategy?InWhatForm?AcrossWhatDimensions?WithWhom?eSupplyChain–StrategicIssuesSynchronizeIntegrateCollaborate©1999AndersenConsulting11TBDIngramMicroCompetitiveAdvantageSpeedExecutionCampbellSoupCaterpillarCokeWal-MartGreaterRevenueLowerCostsFewerAssetsAmazon.comDellProctor&GambleSaraLeeToyotaInWhatForm?AcrossWhatDimensions?WithWhom?eSupplyChain–“TheWinners”SynchronizeIntegrateCollaborate(SelectedExamples)?©1999AndersenConsulting12•ERPSoftware•LANs•SAP,Oracle,Peoplesoft,Baan•Ariba•SeibelCompanyvs.Company•GreaterRevenue•LowerCosts•FewerAssets•CampbellSoup•Caterpillar•Coke•Wal-Mart•WorldwideWeb•Middleware•Optimization•i2,Manugistics,SAPAPO•Aspect,InPart•Extricity,Frontec,SterlingCommerceAlliancevs.Alliance•WhatForm?•AcrossWhatDimensions?•WithWhom?•Amazon.com•Dell•Proctor&Gamble•SaraLee•Toyota•Bandwidth•XML•TBDSupplyChainvs.SupplyChain•CompetitiveAdvantage•Speed•Execution•TBD•IngramMicroExternal99979800010203eSupplyChain–TheeSupplyChainEvolutionInternalExternalCollaborateIntegrateSynchronizeeSCStagesEnablingTechnologiesSoftwareToolsBasisofCompetitionCEOIssues“TheWinners”
