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to download this profile in PDF - Supply and Demand Chain News ...

  1. 1. 2006 Pros to Know By Andrew K. Reese and Sarah Murray Supply & Demand Chain Executive honors today’s supply chain leaders I n our sixth annual Pros to Know issue, Supply & achieve — goals that bring benefits to the enterprise as a Demand Chain Executive is again highlighting whole. those executives working day in and day out to give This year, as in the past, we highlight not just supply companies a competitive edge by transforming their chain Practitioner Pros to Know — executives at supply chains. This year, our theme was leadership. manufacturing or non-manufacturing enterprise charged What is leadership? Retired Gen. Colin Powell, with managing and transforming their company’s keynoting at the Transformation ‘06 conference put on supply chain — but also Provider Pros to Know, by Yellow Transportation in Las Vegas this February, executives working at software firms, service providers, said that the essence of leadership is, in fact, the ability and consultancies and research firms who have made to create “followership.” It’s knowing where you’re significant contributions to the supply chain field. going, and how you’re going to get there, such that In today’s economic environment, the ability of those in your charge will follow you, in Gen. Powell’s executives at supply chain solution providers to words, “if only out of curiosity.” demonstrate leadership is increasingly becoming a As on the field of battle, in the supply chain world, differentiator for their enterprise customers. Supply & leadership is the quality that allows executives to rally Demand Chain Executive salutes this year’s Pros to colleagues to the cause of supply chain transformation Know, who are contributing to companies’ competitive in a time of uncertainty; to effect change in the face advantage and, in doing so, transforming Supply Chain of entrenched constituencies and institutional inertia; into a leading, value-creating function within today’s and to transcend functional interests to pursue — and global corporations.
  2. 2. Robert Kramer Vice President, Working Capital Solutions For his work in evangelizing the principles of Supply Chain Specifically Kramer has helped clients: Finance and helping companies master the increasing • Deploy technology that connects trading partners with complexities of global supply networks, Supply & Demand financial institutions to provide a common global view Chain Executive recognizes Robert Kramer as a 2006 of supply chain events, the flow of funds and the flow of Provider Pro to Know. goods and services between them. Macroeconomic trends are transforming traditional • Enable the processing of “on-demand” Supply Chain supply chains into increasingly complex, loosely linked Finance transactions by suppliers who seek to optimize transnational supply networks, and Robert Kramer their unique cost, capital and risk structures at multiple is helping Global OEMs master this new world of decision points. complexity through a heightened focus on “Supply Chain • Design new analytic frameworks to help OEMs Finance” (SCF). identify the impact of their increasingly decentralized Supply chain trends such as ousourcing and supply chains on their individual cost, capital and risk globalization have combined to transfer manufacturing structures. expense and associated capital investments out to suppliers • Develop new financial and behavioral models to identify at a rapid pace. Today OEMs outsource over 50 percent of and quantify the financial impact of supply chain finance their manufacturing activities, with many over 75 percent. inefficiencies on the OEM and their suppliers. In addition to holding inventory, suppliers now make a • Design solutions that maximize value for both the majority of the capital investment decisions that impact OEM and their suppliers based on the unique objectives end product price and quality. of the OEM and their supply chain Further, rapid decentralization demographics. has caused supply chains to Kramer’s personal role in educating behave more like the decentralized companies about supply chain networks of the capital markets, with management and B2B e-commerce has many independent actors making included helping different functional independent value optimization groups within the enterprise develop decisions, often based on poor consensus despite their diverse — and information and inadequate access sometimes conflicting — objectives. He to financial and risk management also has worked to evangelize Supply tools. While investment and resource Chain Finance concepts to trading partners allocation decisions are increasingly big and small throughout client supply made at the supplier level, the chains, helping them recognize the value information and resources required to they are receiving from the OEM’s SCF optimize these decisions are often held implementation. by the OEM. Looking ahead, Kramer believes that Kramer believes that traditional global supply chain leaders (OEMs or command and control structures, designed for centralized “brand owners”) will more easily and quickly understand and vertically integrated supply chains, are no longer the quantitative effects of their decentralized supply adequate for managing today’s networked supply chains. chains on their individual cost structures. Top quartile Simply automating manual command and control organizations will take a total supply chain view and use structures or treating the supply chain as a static linear technology to harness the power of distributed decision network will not maximize value to the OEM or the making by suppliers. This technology will provide supply chain, he says. information connectivity and on-demand transaction Driven by these beliefs, Kramer has helped advanced processing to both their suppliers and the capital markets. the field of supply chain technology and supply chain “The abilities and creativity of the global capital management by assisting Global OEMs understand the markets will be brought to bear on the corporate supply root causes of inefficiencies within the cost, capital and chain as they never have before, dramatically reducing risk structures of their supply chains. He has helped them cost, risk and capital inefficiencies,” Kramer says. “The make decisions on how to holistically address these root combination of improved information quality and causes and deploy solutions centered on “Supply Chain velocity along with distributed decision making has Finance.” These solutions leverage technology and the been the hallmark of process efficiency throughout power of the global capital markets to optimize supply the information revolution. Working capital tied up chain performance. The impact on shareholder value is in the accounts payable and receivable processes, now sizeable, with potential increases in free cash flow of $50 comprising $6 trillion in the United States alone will, for million per $1 billion in revenue through optimization of the first time in over 25 years, begin to fall more rapidly the underlying business processes. than inventory levels.”
  3. 3. 1349 W. Peachtree Street, Suite 900 Atlanta, GA 30309 tel: 678-904-7100 fax: 877-217-3838