Business Integration Model 2003 AndersenConsulting 1 Linking the globe with real-time applications that maximize customer desires with reduced cost structures through optimized software with operations executed by both internal people and external alliance partners. Gregory J. Owens Former Global Managing Partner Supply Chain Practice March 4, 1999 A Holistic Perspective:Supply Chain Management 2003 AndersenConsulting 2 The SCM pitfalls we have learned to date. Benefits from sharing sales forecasts and inventory levels are achievable but fall short of the promise The barriers to collaboration and integration are organizational and behavioral not technological or economic - the Fear of Change Lack of trust and integration of company practices are key obstacles 2003 AndersenConsulting 3 “The SCM Practice comprises experts in technology, processes, strategy and change management, enabling it to provide clients with cross-functional solutions.” AMR Research Alert on Supply Chain Management (August 1998) Successful SCM initiatives typically combine strategic and tactical change to all components of a company. 2003 AndersenConsulting 4 Executives should take a holistic business approach to successfully synchronize their supply chains. Implement the right enabling technologies Develop a synchronization strategy, and choose the right initiative Develop supporting process capabilities Restructure and re-skill organizational relationships 2003 AndersenConsulting 5 Determine With Whom To Synchronize Determine Your Synchronization Scope Number of Partners Partners’ Strategic Importance Upstream or Downstream Positioning of Partners Nature of Relationship Partners’ Capabilities Supply Chain Structure Product Lines Customer Priorities Business Functions Market Offerings Channel Strategies First and foremost, successful synchronization requires developing a synchronization strategy. 2003 AndersenConsulting 6 Demand Generation Companies will then need to develop processes to support each core capability. Forecasting & Fulfillment Product Design Outsourcing Materials & Capacity Synchronized Supply Chain Strategy 11/4/98 2003 AndersenConsulting 7 Implementing the right enabling technologies is also critical to the success of synchronization. Automated business processes Today’s Technology ERP, Y2K Single solution legacy driven Process Solution Drivers Technology Solution