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Supply
chains need to be
designed they normally do not "just happen".
By leaving supply chains to 'evolve naturally
or by chance', we end up ignoring vast opportunities
to make integrated, end-to-end supply chain operations
an engine of business strategy, which can deliver
substantial and lasting value to customers and
shareholders.
We help companies evolve a planned and deliberately
created supply chain. Our
approach is based on the following five "fulcrum
points":
1. Supply chain configuration
2. Enabling practices
3. Strategic relationships
4. Organization
5. Information Technology applications
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| The five fulcrum points
are highly interdependent. |
| 1.
Supply chain configuration
If you trace a thread backwards from
your customers through your organization
you will see many sub-chains of activities
and transactions cris-crossing each
other. These threads need to be identified,
mapped, rationalized and integrated. |
2.
Enabling practices
Necessary changes can often be implemented
quickly, but organizational behavior
also needs to change profoundly and
quickly. The key enabling practices
include, standard process models (viz.
SCOR or APQC), strategic planning,
activity based costing, balanced scorecard,
benchmarking etc. These supplemented
by strong Human Resource focus; Fiscal
Policies and Controls; agreed and
consistent 'Service Level agreements'.
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| 3.
Strategic relationships
On the source side, these relationships
may range from close collaboration
to outsourcing. On the deliver side,
it may be to become your customer's
preferred supplier/partner. |
4.
Organization
Responsibilities for overall supply
chain ownership may change. There
is no one best organizational structure,
but the key is end-to-end management.
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| 5.
Information technology
Many of today's best practices would
be impossible without recent advances
in software. In fact, IT has been
the primary accelerator of the supply
chain at most companies. But trying
to use IT as the sole point of supply
chain improvement can make matters
worse. Successful innovators are using
IT to integrate their suppliers and
customers into a virtual supply chain.
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| Case
Study: |
A
Business Unit of a Fortune 100 company wanting
to redesign and integrate its suppy chain.
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| Business
Results |
Approach |
• Eliminated Redundant
Operations/Activities
• Quickened Cycle Times
• Reducing Error Rates
• Improved Customer Satisfaction
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• Identify, Map and
Review existing business
processes addressing the
‘Order to Delivery’
and ‘Purchase to Pay’
business cycles
• Assess the value addition
/efficiency/redundancy
profile of current activities,
practices, organization
structure and interrelationships
• Examine the ‘enabling’
role of IT transactions/interfaces
in business performance
• Evaluate business rules and their
adequacy in allowing existing
processes/practices /rules
in allowing people to perform
effectively
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• Identify and Model Business Processes
• Establish existing performance baselines
• Map and analyze existing activities,
IT interfaces and business
rules
• Assign activity attributes
and bottlenecking causes
• Set-up Reengineered activity maps
• Set implementation road-map
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• Reduced Inventories
• Enhanced process reliability and
robustness
• Establish performance standards
and service levels
• Enhanced competitiveness.
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