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Supply Chain Collaboration and Visibility TECHNOLOGY SOLUTIONS OR PROCESS TRANSFORMATION? |
| Compiled by Lothair, Written by Norbridge | |
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BLACKWELL, Florida East Coast Industries: (Mr. Blackwell recently served as Group Director Transportation & Logistics of a major forest products company.) Technology is not the answer, but it certainly is an enabler. We had over 500 locations, and we didnt have visibility throughout the supply chain. We used a variety of ERP (enterprise resource
planning) solutions. In one case we spent tens of millions trying to
put an ERP into effect and then abandoned it because our enterprise
was so complex. REGAN, Tranzact Technologies:
I think were doing a disservice to the readers if we dont
point out that, often, companies tend to keep the systems rather than
deal with the illness. I personally believe that a lot of CEOs find
it is easier to write a check for a major systems implementation than
to deal with the reality that their business model might be flawed.
SHEPARD, Ryder: Im a technology
guy, and I often hear: Give me ten pounds of technology and make
it all go away. And we always say, no, you cant do that.
In a recent case, we spent almost a year
looking at all of a customers logistics business practices. And
only then when we had completed the gap analysis, agreed on what
the process was (and is) and should be, and obtained the client sign
off did we bring in the IT people to start the functional design.
Its a good example of a strong collaboration between our client,
Applied Materials, our technology partners, SeeBeyond and Manhattan.
MATTHEWS, Optum:
One of our customers was able to remove $180 million in inventory costs
in the first year. Thats a significant number and the kind
of return you dont get from just seeing whats out there
in your supply chain. Its a very interesting story. They didnt
start with specific goals and aspirations for the project, but they
knew they were hemorrhaging. They just knew they
needed to make the supply chain more efficient. Achieving visibility
was simply the first hurdle, because it revealed what wasnt working.
The real ROI came from the cross-enterprise business processes that
were applied and enforced by our software. Looking at these huge savings with our
client, we were able to attribute 25 percent of the savings to the product.
But the bulk of that $180 million in savings is a result of business
process change they initiated. MOREHOUSE, A.T. Kearney: Well, actually,
I did have a word for this, and that is that every companys strategy
is unique. Software doesnt solve the problem. Also,
I think weve completely missed a major point. Were sitting
here like a bunch of operations people thinking weve got to respond
to whatever the marketing folks decide they want to do to promote products,
issue new products, or cut off products, or whatever it happens to be.
And the fact of the matter is we shouldnt be sitting here just
responding. We should be looking at this holistically, including the
marketing and the new product development and the whole process. Instead
of sitting here saying, How can I run new technology or do this
a little better, its important to first determine if we
face a fundamentally flawed process. GOLD, KPMG: Trading partners need
to leverage technology to get connected first. Getting connected and
determining how to communicate utilizing the right technology mediums
and applications is a large task. The challenge today is more about
the how to get connected rather than the why.
After trading partners figure out the how, then they can
begin to leverage the information they pass between them. JOHNSON, SeeBeyond: First,
like Ryder, you should focus on improving key processes that will drive
value for you and your customers. Second, you must leverage proven technology
to drive the desired value throughout the organization. Take the time
to do it right. ROBERS, Cap Gemini Ernst & Young:
I hear a couple of common themes here. The
first is that companies must use technology intelligently. The second
is that companies must truly understand their business model. This is
where Cap Gemini Ernst & Young is helping companies like Ford to
implement their business strategy around service parts using a more
customer-centric service model. POLIS, Dotcom Distribution: What a CEO can do first of all is commit the company to embrace technology. But just as importantly he has to commit to change in his company. Unless a CEO commits to change in the company, any efforts will fail. Its that simple. |