5 Secrets For 21st Century Supply Chain Management

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Kinaxis | This presentation gives supply chain managers the inside track on how to adapt their supply chain to meet the operations performance challenges of the modern supply chain. It presents five powerful “secrets” that can help you move on from the linear tactics of the past, and take concrete steps toward a dynamic future and a more ideal supply chain solution for the 21st century.

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5 Secrets For 21st Century Supply Chain Management

  1. 1. Five Secrets of the 21st Century Supply Chain: What supply chain managers need to know to compete (a white paper summary) www.kinaxis.com Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  2. 2. Secret #1 The world of manufacturing has changed, and you need to change with it • Over the past 25 years, outsourced, multi-tier supply chains have radically changed the face of supply chain management. • Many manufacturing firms now have little supply chain visibility or control over their partners. • It has become more and more difficult to make decisions or take action, yet the need to do so is more acute than ever. • Manufacturing firms need the agility to respond to constant changes in supply or demand. 2 Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  3. 3. Secret #2 Legacy planning APPLICATIONS won’t cut it any longer • Traditional applications were never designed for today’s complex supply chains or multi-enterprise environments. • The fatal flaws of supply chain planning apps: • used by a small number of planners; do not seek transparent input from all stakeholders • designed around a single enterprise focus • produce plans based on extremely complex models that are difficult to adjust to rapidly changing conditions • are dependent on the accuracy of the mathematical model, which cannot capture perfect information from all sources • are based on a batch process run once a month or week • produce a single plan, not several what-if scenarios 3 Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  4. 4. Secret #3 You don’t need to “rip and replace” your ERP system for better results • You invested big-time in your ERP system, and it works; but now it’s time to extend it. • The real problem is that many legacy planning modules have been added onto these ERP systems, and these add-ons have now outlived their usefulness. • Supply chain solutions should be able to pull data from multiple systems (including ERP), provide tools for analyzing it, and deliver a single version of the truth to many parties to support collaborative supply chain management. 4 Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  5. 5. Secret #4 In uncertain times, trust is everything • A defining characteristic of supply chain maturity is the level of trust that exists between business partners. • Trust is a key element because it demonstrates integrated business planning in the supply chain. 5 Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  6. 6. Secret #5 For best results, optimize your processes, not your plan • Companies today need technology that provides quick decision support for managers. • Key strategic elements: • Agile response. allows team members to react in a timely manner and move toward event-driven planning. • Live collaboration. creates an online forum where human intelligence can help capture all the nuances of business partner relationships. • Flexible “what-if” testing. allows decision-makers to weigh the consequences of various decisions more precisely. 6 Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  7. 7. What to look for in a SCM system Critical features: • Personal alerts - define conditions for notifications to take action • Active spreadsheets - enable teams to view, share, and manipulate live data with real-time supply chain analytics • Live scorecard –rank & align multiple alternatives against KPIs • Resolution engine – model what-if options in real-time with team members across the supply chain • Source system agnostic - integrate data from all ERP and supply chain planning systems • Web-based access – access information and tools anywhere, any time • Small IT footprint - require no investment in on-premise hardware, and no expensive consulting for integration or testing • Quick startup - low risk, and fast time to results for a rapid ROI 7 Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  8. 8. Download the white paper: Five Secrets of the 21st Century Supply Chain www.kinaxis.com company /resource center /white papers Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential
  9. 9. Share your comments & ideas on the Kinaxis Blog http://blog.kinaxis.com Copyright © Kinaxis 2009. All rights reserved. Kinaxis Confidential

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