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Supply chain management

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Supply chain management

  1. 1. SUPPLY CHAIN MANAGEMENTNEW COMPETITIVE REALITIES By Nikhil Gangadhar
  2. 2. “Why is supply chain so hard?” In-depth interviews with twenty-nineautomotive executives– Sixteen manufacturing and suppliercompanies– Global organizations– European and North AmericanParticipation Interviews covered a broad range ofquestions around SCM activities withinthe organization and its impact with itsvalue net– Current opportunities and challenges– SCM’s influence on the organization– Technology’s influence/impact on SCM– Activities and future plans
  3. 3. We broadly defined supply chain management (SCM)
  4. 4. We heard several points over and over againfrom intervieweesThe performance of SCM lags its recognizedimportance SCM crosses numerous boundaries, bothinternally and externally Globalization has an increasingly larger impacton supply chain tasksComplexity, ranging from company cultures toproduct design, multiple sourcing and pricingconfigurations continues to create significantchallenges
  5. 5. Manufacturers have some specific challenges. . ..Intense cost pressures Managing the global supply chain• Establishing additional manufacturing footprints• Identifying sourcing partners
  6. 6. focusing heavily on technology: Standardization– Common nomenclature and data formats– Common tools Integration– diverse computer systems– supply chain processes with engineering,purchasing, logistics, etc Implementation of portal technologies
  7. 7. Suppliers face similar challenges with adifferent twist . . Increased complexity of manufacturer ordersCost and pricing issues Risk management in the supply chain Collaboration and relationship management inthe supply chain
  8. 8. focusing on the use of technology a littledifferently Connection and collaboration with the Tier Nsupply Base Cost reductionInventory visualization Computer system integration
  9. 9. Manufacturers and suppliers agree on some ofthe most important things. . .Inventory is the hidden cost within the supplychain– Taking cost out is still a major problem Globalization has a significant impact– Identifying and managing suppliers from afar ischallenging Complexity continues to increase– Both product design and in management ofrelationships
  10. 10. The road ahead for SCM effortsKey success factors include: Better linkages betweenforecast and material requests Use of portal technologies tointegrate internally ANDexternally Integration of functions toimprove performance, increaseeffectiveness and reinforceconsistent organizational cultures
  11. 11. Thank you

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