Firms demonstrating high levels of supply chain competency report high-perceived performance levels on a number of different outcome measures
Supply chain measurement model Customer Service Cost Management Quality Productivity Asset Management Supply Chain
Performance metrics Delivery Flexibility Advanced Shipment Notification Order Flexibility Delivery Speed Return on Assets Order Fill Capacity Responsiveness Product Flexibility Inventory Turns Information System Support Delivery Dependability Logistics Cost Customer Satisfaction Asset Management Productivity Quality Cost Management Customer Service
What is flexibility? Actually, it is not so much about avoiding commitment to an irreversible decision. It involves development of operational resources that can quickly be redeployed in response to real time -- or at least very recent -- cues from the environment, be it actual demand, a schedule built from a collaborative forecast with a very short time horizon (like a month or less), etc. In production it generally means being able to quickly shift from building one SKU to another. Delivery flexibility requires having different means of transportation based upon the cost/service requirements for the order, sometimes perhaps using package delivery, other times LTL, still other times consolidating with other orders to build a full TL. In ordering, it is associated with the ability to quickly capture demand cues and assign products to orders in various ways based upon where product is available and what the replenishment requirement is. Then, the previously defined operational assets might be used to create different ways to fill orders without having all product coming from stock. The fast moving, smooth demand product might be from stock, but slow-moving items might be pulled from a centralized facility to reduce stock in the system. In extreme situations where product values justify it, slow-movers may be made to order in very short cycle times to fill an actual order. Ted Stank, MSU, private communication, 28 Jan 02.
Productivity .094 .307 Advanced Shipment Notification .100 .316 Order Fill Capacity .284 .533 Information System Support Coefficient of Determination [r 2 ] Correlation Coefficient [r] Performance Variable
www.fedex.com FedEx is the world's largest express transportation company, with 624 aircraft and service to over 211 countries. There are 46 call centers across the globe handling over 500,000 telephone calls daily. FedEx employs over 145,000 people, including 42,500 couriers who deliver more than 3.1 million packages every working day.
“ The best global brands,” (BW, 8/5/02) Brands usually aren’t listed on corporate balance sheets, but they can go further in determining a company’s success than a new factory or technological breakthrough. That’s because nurturing a strong brand…can allow companies to premium prices… A strong brand also can open the door when growth depends on breaking into new markets. Starbucks Corp., among the fastest-growing brands, recently set up shop in Vienna, one of Europe’s café capitals, and says 400 of its planned 1,200 new store openings this year will be overseas.
“ The best global brands,” (BW, 8/5/02) Data: Interbrand Corp. J.P. Morgan Chase & Co . 24.2 Marlboro 9 21.0 Mercedes 10 26.4 McDonald’s 8 29.3 Disney 7 30.0 Nokia 6 30.9 Intel 5 41.3 GE 4 51.2 IBM 3 64.1 Microsoft 2 69.6 Coca-Cola 1
From peoplesoft.com Supply Chain Management: PeopleSoft 8 Supply Chain Management solutions are designed for the collaborative enterprise. With our fully integrated, end-to-end solutions, you get real-time information. From order capture, collaborative planning and fulfillment, to service and measurement, you can access the information anytime, anywhere through a web browser. At PeopleSoft, we realize that one size doesn't fit all, which is why our solutions are flexible. And we offer comprehensive solutions to suit any organization's supply chain needs, big and small. With PeopleSoft 8, you get the only pure internet supply chain management solution for the global enterprise. Check out our comprehensive solutions for Supplier Relationship Management (SRM), Distribution, and Manufacturing and Planning.
From www.i2.com Companies have realized enormous benefits from supply chain management (SCM) over the past decade –reduction in inventories of 25–60%, delivery improvements, and improved capacity utilization of 10–20%, to name a few. In fact, as the leader in SCM, i2 has delivered over $29.94 billion in audited value as of October 2001. This is just the beginning. The next leap forward in productivity will occur when two things happen. First, when SCM is linked to two critical processes – customer relationship management and supplier relationship management. Second, when companies just don’t share information, but when workflows within a company and between companies are linked. When these two things happen, then companies can react with real-time intelligence to changes from product concept all the way to product delivery.
From siebel.com Siebel Systems provides the industry's most comprehensive family of multichannel eBusiness applications and services. Siebel e Business Applications enable organizations to create a single source of customer information which facilitates selling to, marketing to, and servicing customers across multiple channels, including the Web, call centers, field, resellers, retail, and dealer networks. Siebel