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Disruptivechangewithinnationalandglobaleconomiesisnothingnew.Upheavalsofvariouskindshappenatregularintervalsandcorporateexecutiveshavelearnedtobothexpectthemanddealwiththem.Thevolatilityweseearoundusnowseemstobeapermanentfactofbusinesslifeandisaproductofinstabilityininternationalrelations,theunforgivingstockmarket,managementfailures,politicalturbulence,andgrowingconnectivitythroughoutanincreasinglyglobalizingeconomy.Thebiggestchallengeistransformingbusinessstructures,priorities,attitudesandpracticesforthelong-termtopreventshort-termcrisismanagement.Thegoalistohelpenterprisesfeelcomfortableandconfidentinconditionsofvolatilitybybecomingpermanentlyadaptive.Enterpriseadaptivenesshastoby-passcurrentmanagementtechniquesandbecomepartofthebusiness“DNA.”Companiesmustbeabletorapidlyrecombine,reconfigureandgenerallychangeshapeatwilltoholisticallytacklekeyissues.CapGeminiErnst&Young(CGE&Y)hasidentifiedanddesignedsolutionsforthethreecharacteristicsofanadaptiveenterprise:1.ReadandRespond:Adaptivebusinessesviewcapabilitieswithintheenterpriseandeco-systemasaportfolioofoptionstobemanaged.Thisimprovesthecycletimeandqualityofthewaycapabilitiesaredeployed.2.LearnandLeverage:Fluidorganizationsworkefficientlytoidentifytheneedfornewcapabilities,whiledeployingtheinternalandexternalresourcesneededtodevelopthem.3.Plug&Play:Flexibleorganizationsrecombinemodularcapabilitiesandresourcestocreatenewoffers,systemsandprocessesathighspeed.Universaldataexchangeandjointproductdevelopmentarealsothekeystoanewgenerationofpartnershipswithsuppliers,customers,andyourownpeople.Totakefulladvantageoftheadaptivepossibilities,businessleadersmustchangetheirmindsets.Redefiningmanagementpracticesandrefiningorganizationalprinciplescanconnectanenterprisetoawealthofinternalandexternalintellectualcapital.Itisalsoatruetestofmanagementvisionandconfidence.Inaworldofpermanentvolatility,adaptivenessistheverykeytosurvivingandthriving.AdaptiveSupplyChainsglobalpointofviewSeizingtheCompetitiveEdgeinSupplyChainManagementPermanentVolatilityandtheAdaptiveEnterpriseTheAdaptiveSupplyChainandtheAdaptiveEnterpriseCreatinganadaptivesupplychainapproachiscriticaltoday,whencompaniesarecompetinginavolatileeconomicenvironmentandarefindingitincreasinglydifficulttoforecastthefutureperformanceoftheirbusinessormarketplace.Anadaptivesupplychainoperationdynamicallyintegratesdemandandsupplymanagement,targetscustomerstoboostrevenue,andhelpstomaximizeprofitandshareholdervalue.Thekeyenablersofanadaptivesupplychainareleanandflexibleoperations,end-to-endvisibilityofsupplyanddemand,collaboration,event-basedmanagementandintegratedtechnology.Adaptivesupplychainsalsoenableacompanytolinkordermanagementwithplanningandforecastinganddevelopseparateoperationsforcustomersegmentation.Bycreatingadaptivesupplychainoperations,companiesarebetterpositionedtotacklechangesinthesupplychainenvironment.Beyondthat,anadaptivesupplychainenablesacompanytobecomeanadaptiveenterprise,inwhichtheirkeyprocesses—andtechnology—cangaugeandrespondquicklytochangesinthemarket,considerthebestoptionstousecapital,andgrowaheadofitscompetitors.BuildinganAdaptiveSupplyChainTogaintrue,long-termcompetitiveadvantage—andreduceoverallcostsandincreaseefficiency—companiesneedtotakeamoreholisticapproachtooptimizingtheirsupplychains.Itistheintegrated,end-to-endsolutions,notthequick-fix,pointsolutions,thatdrivevalueandevenrevenue.Toassistcompaniesinevaluatingtheirsupplychains,CGE&Yhasdevelopedahigh-levelframeworkcalledtheNetworkedValueChain®(NVC®).Challengingclientstoanalyzetheircurrentbusinessmodels,NVCprovidesablueprintforachievingtheultimate,fullyintegratedsupplychain.Italsoidentifiesstepsthatcompaniescantaketoimplementsolutionsthatmeettheirspecificbusinessgoalsandneeds,whetheritisbalancinginventory,raisingcustomerservice,reducingcosts,orincreasingrevenue.Previously,supplychainsolutionsfocusedonimprovingoneprocessatatime,suchasprocurement,transportation,orinventory.Butinvariably,wheninventorycostsplummeted,transportationcostsrose,underminingthegains.NVC,ontheotherhand,reviewsandincorporatesmultipledepartmentstohelpoptimizeresultsacrosstheentiresupplychain.“Integratedsolutionshelpoptimizereturnsacrossmultipledepartmentsandhelptotriggerprocessandtechnologychanges,”saysPraveshMehra,CGE&Y’sB2B-SupplyChainServicesLeaderintheAmericas.Bytransformingthesupplychainprocessandincorporatingtechnologicalchanges,theintegratedNVCcanhelpreducecostsandincreaserevenue,atruewin-win.Historically,supplychainmanagementhaspresentednumerouschallenges.Asnewordersarrive,inventorymovesinandoutofthewarehouse,anddatachangesquickly.NVChelpscompaniesgaincontroloftheirsupplychaindataandworkflow.“Atthecoreofsupplychainmanagementisbalancingdemandandsupplyandgainingahandleonthedemandonaminute-by-minute,hourlyanddailybasis,”saysPhilRobers,CGE&Y‘sGlobalB2B-SupplyChainServicesLeader.“NVCintegratesallofthedifferenttechnologiesandapproachesincludingbuying,transporting,designing,andmanufacturing.”“GlobalfirmsofEuropeanoriginarenowbuildingadaptivesupplychaincapabilitiestocopewiththe