BusinessIntegrationModel2003AndersenConsulting1Linkingtheglobewithreal-timeapplicationsthatmaximizecustomerdesireswithreducedcoststructuresthroughoptimizedsoftwarewithoperationsexecutedbybothinternalpeopleandexternalalliancepartners.GregoryJ.OwensFormerGlobalManagingPartnerSupplyChainPracticeMarch4,1999AHolisticPerspective:SupplyChainManagement2003AndersenConsulting2TheSCMpitfallswehavelearnedtodate.•Benefitsfromsharingsalesforecastsandinventorylevelsareachievablebutfallshortofthepromise•Thebarrierstocollaborationandintegrationareorganizationalandbehavioralnottechnologicaloreconomic-theFearofChange•Lackoftrustandintegrationofcompanypracticesarekeyobstacles2003AndersenConsulting3“TheSCMPracticecomprisesexpertsintechnology,processes,strategyandchangemanagement,enablingittoprovideclientswithcross-functionalsolutions.”AMRResearchAlertonSupplyChainManagement(August1998)SuccessfulSCMinitiativestypicallycombinestrategicandtacticalchangetoallcomponentsofacompany.TECHNOLOGYBUSINESSINTEGRATIONPEOPLEPROCESS/OPERATIONSSTRATEGY2003AndersenConsulting4Executivesshouldtakeaholisticbusinessapproachtosuccessfullysynchronizetheirsupplychains.TECHNOLOGYSynchronizedSupplyChainPEOPLEPROCESS/OPERATIONSSTRATEGYImplementtherightenablingtechnologiesDevelopasynchronizationstrategy,andchoosetherightinitiativeDevelopsupportingprocesscapabilitiesRestructureandre-skillorganizationalrelationships2003AndersenConsulting5DetermineWithWhomToSynchronizeDetermineYourSynchronizationScopeNumberofPartnersPartners’StrategicImportanceUpstreamorDownstreamPositioningofPartnersNatureofRelationshipPartners’CapabilitiesSupplyChainStructureProductLinesCustomerPrioritiesBusinessFunctionsMarketOfferingsChannelStrategiesFirstandforemost,successfulsynchronizationrequiresdevelopingasynchronizationstrategy.2003AndersenConsulting6DemandGenerationCompanieswillthenneedtodevelopprocessestosupporteachcorecapability.Forecasting&FulfillmentProductDesignOutsourcingMaterials&CapacitySynchronizedSupplyChainStrategy11/4/982003AndersenConsulting7Implementingtherightenablingtechnologiesisalsocriticaltothesuccessofsynchronization.AutomatedbusinessprocessesToday’sTechnologyERP,Y2KSinglesolutionlegacydrivenProcessSolutionDriversTechnologySolutionSupplychaindecisionsupportSupplychainintegrationMultiplesolutioninstallsEmergingTechnologyAlignandIntegrateCollaborativesupplychaintechnologyValue-basedexternalcollaborativemodelsMultiplesolutionintegrationFutureTechnologyCollaborate&Synchronize2003AndersenConsulting8CommitmentInterdependentInteractive/AlignedInvestmentTransactionalUnderstandingHostileConnection/CultureSynergisticIntegrateCollaborateSynchronizedTheJourneytoSynchronization2003AndersenConsulting9Supplychainorganizationsmustberestructuredandre-skilledtosupportthesestrategiesFeaturesofatypicalsupplychainorganization•Contractualrelationshipswithcustomersandsuppliers•Organizationandmanagementoffunctionalactivities•Functionallyorientedmetricsandremuneration•Mistrustbetweenfunctions•FocusonfunctionalskillbuildingFeaturesofaleadingsupplychainorganization•Harnessthepowerofbusinesspartnersandalliances•Organizationandmanagementofcrossfunctionalprocesses•Customerfocusedmetricsandincentives•Teamapproach•Developmentofresourceswithsophisticatedsupplychainwideunderstanding