BusinessIntegrationModel 2003AndersenConsulting 2 Linkingtheglobewithreal timeapplicationsthatmaximizecustomerdesireswithreducedcoststructuresthroughoptimizedsoftwarewithoperationsexecutedbybothinternalpeopleandexternalalliancepartners GregoryJ OwensFormerGlobalManagingPartnerSupplyChainPracticeMarch4 1999 AHolisticPerspective SupplyChainManagement 2003AndersenConsulting 3 TheSCMpitfallswehavelearnedtodate BenefitsfromsharingsalesforecastsandinventorylevelsareachievablebutfallshortofthepromiseThebarrierstocollaborationandintegrationareorganizationalandbehavioralnottechnologicaloreconomic theFearofChangeLackoftrustandintegrationofcompanypracticesarekeyobstacles 2003AndersenConsulting 4 TheSCMPracticecomprisesexpertsintechnology processes strategyandchangemanagement enablingittoprovideclientswithcross functionalsolutions AMRResearchAlertonSupplyChainManagement August1998 SuccessfulSCMinitiativestypicallycombinestrategicandtacticalchangetoallcomponentsofacompany 2003AndersenConsulting 5 Executivesshouldtakeaholisticbusinessapproachtosuccessfullysynchronizetheirsupplychains Implementtherightenablingtechnologies Developasynchronizationstrategy andchoosetherightinitiative Developsupportingprocesscapabilities Restructureandre skillorganizationalrelationships 2003AndersenConsulting 6 DetermineWithWhomToSynchronize DetermineYourSynchronizationScope NumberofPartners Partners StrategicImportance UpstreamorDownstreamPositioningofPartners NatureofRelationship Partners Capabilities SupplyChainStructure ProductLines CustomerPriorities BusinessFunctions MarketOfferings ChannelStrategies Firstandforemost successfulsynchronizationrequiresdevelopingasynchronizationstrategy 2003AndersenConsulting 7 DemandGeneration Companieswillthenneedtodevelopprocessestosupporteachcorecapability Forecasting Fulfillment ProductDesign Outsourcing Materials Capacity SynchronizedSupplyChainStrategy 11 4 98 2003AndersenConsulting 8 Implementingtherightenablingtechnologiesisalsocriticaltothesuccessofsynchronization Automatedbusinessprocesses Today sTechnology ERP Y2K Singlesolutionlegacydriven ProcessSolution Drivers TechnologySolution 2003AndersenConsulting 9 2003AndersenConsulting 10 Commitment Interdependent Interactive Aligned Investment Transactional Understanding Hostile Connection Culture Synergistic Integrate Collaborate Synchronized TheJourneytoSynchronization 2003AndersenConsulting 11 Supplychainorganizationsmustberestructuredandre skilledtosupportthesestrategies FeaturesofatypicalsupplychainorganizationContractualrelationshipswithcustomersandsuppliersOrganizationandmanagementoffunctionalactivitiesFunctionallyorientedmetricsandremunerationMistrustbetweenfunctionsFocusonfunctionalskillbuilding FeaturesofaleadingsupplychainorganizationHarnessthepowerofbusinesspartnersandalliancesOrganizationandmanagementofcrossfunctionalprocessesCustomerfocusedmetricsandincentivesTeamapproachDevelopmentofresourceswithsophisticatedsupplychainwideunderstanding