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1、PwCSupply Chain ManagementAccelerating Cost EffectivenessPricewaterhouseCoopers2Supply Chain Management The supply chain used to be a simple serial process with raw materials slowly moving in one direction through manufacturing production and onward via a distribution system to retailers and custome
2、rs. Today, the talk is of “supply networks“, “parallel chains“, “enhanced concurrent activities“, and “customer centric” with new information platforms and technology set to cut both inventory and lead-times throughout the delivery pipeline further.PricewaterhouseCoopers3Top Issues Facing SCM Profes
3、sionalsIn a recent quantitative survey, SCM professionals were asked a open-ended subjective question, “What are the three biggest issues facing you personally in developing your logistics strategy?”Source: AMR Research 2000 The top three responses were; Cost (21%), Systems Applications (20%) and In
4、tegration (19%)PricewaterhouseCoopers4SCM BenefitsManufacturerDistributors/ WholesalersCustomers SuppliersRetailersMaterials Flows Information Flows Cash FlowsUS companies expect to reap $3-400B of savings through a variety of benefits (3 5% of revenues) Source: PRTMPricewaterhouseCoopers5Move From
5、Push To PullManufacturersDistributors/ WholesalersCustomerSuppliersRetailersManufacturersDistributors/ WholesalersCustomerSuppliersRetailersMake what we sell, not sell what we make!PricewaterhouseCoopers6Move to Cross-Functional Business ProcessesPurchasing ManufacturingDistributionInstall/ Maintena
6、nceSalesSourceMakeDeliverInstallSellOrder FulfillmentAvailable-to-PromiseSales shifting production between installations or business partners; and moving goods to the final consumer. Understanding relationships between all players in a particular value chain allows an e -business to adjust to new co
7、ntingencies in real time.PricewaterhouseCoopers25The Transformation of Logisticse-Business transforms logistics from simply packaging and moving goods and turns it into an information business. Introducing online parcel order and tracking via a proprietary network in 1983, Federal Express took nearl
8、y 12 years to sign up 50,000 customers. In 3 years, between 1995-1998, after FedEx offered essentially the same service via the Web, the number of customers rose to 1 million. FedEx estimates nearly 70 percent of the 3 million packages it processes each day now are initiated via interactive networks
9、.PricewaterhouseCoopers26Supply Chain Managemente-Business Driving TransparencyWhen building visibility of the entire supply chain, this also includes customers. e-Business gives the customer access to the suppliers product data, ordering and delivery information. This drives transparency within the
10、 organization and forces the supplier to develop better delivery and support systems.Product Lifecycle ManagementCustomer ManagementSupplier CollaborationDesign PartnersConsumers and ChannelsPricewaterhouseCoopers27Recommendations Include e-business as part of your top three supply chain agenda item
11、s. Put in effort to articulate a value proposition for e-business within your company, and the impact it will have on your supply chain. Seek and gain cross-functional and key trading partner alignment on your strategy. Look for additional learning opportunities.Look at the early adopter or e-busine
12、ss-oriented companies, e-business consultants, system integrators, and colleagues in supply chain management. Lessons can be learned in both the Business-to-Consumer (B2C), as well as Business-to-Business (B2B) domains. Broaden your perspectives on e-business beyond customer interaction and supply c
13、hain cost savings. Consider the broader implications of supplier and trading partner visibility, Business Community Integration (BCI), and partner collaboration. A broadened perspective can yield greater opportunities for leveraging e-business processes within the supply chain. Consider some form of
14、 electronic marketplace adoption as part of your supply chain strategy. Evaluate the long-term presence of trading exchanges according to the value-added services they can provide that are over and above procurement transactional cost savings. Evaluate your strategies to impact both the sell-side and the buy-side processes.
