February Aitp Presentation 20110201


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Supply Chain 2.0 - Challenges and opportunities in Supply Chain 2011

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February Aitp Presentation 20110201

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  7. 7. Organizations should strive to define and then focus on their core strengths. The conceptof outsourcing and partner collaboration will gain importance. One possible outcome ofthe recession will be an increase in outsourcing, whether it is functions or SME, manyorganizations have eliminated positions and expertise they would have utilized in the past.This can be a positive outcome for the organization as long as they can identify when theyneed the expertise and a partner to collaborate and support their needs.Social media tools relate and support or extend the integration capabilities both internallyand externally to create a ‘Supply Chain 2.0’- Wiki – use to document and publish rules, procedures, vendor requirements, BPMdocumentation - institutionalize tribal knowledge-Pub / Sub concept of Twitter, Yammer Quora support alerts or event management andprogress reporting. Platform like Quora great for questions and problem resolution.Quora.com is like a combination of Wiki and Twitter, provides power of group thinking andthe immediacy of Twitter in communications to your peers and network.- Network relationships will become critically important, concept of level 1, 2 and 3connections to provide support and analysis for current problem, event and also the newpartner, or software, selection process. 7
  8. 8. This chart shows the breakdown of capabilities in relation to the total number ofcompanies. This breakdown relates back to Aberdeen’s standard breakdown of theindustry by Best in Class, Industry Average and Laggards. Here are some eye-openingstatistics related to visibility and integration challenges in the supply chain based on asurvey of 100 supply chain executives at firms with over 250 employees:-Each supply chain executive spends an average of 48% of their time sifting throughspreadsheets, emails and databases to keep on tom of the information flow!-1 in 3 companies admitted to seeing physical products flow faster than , or as quick as,information flows across their supply chain-The information management for many supply chains doesn’t reflect the wayorganizations operate today!-Reasons for poor performance in the supply chain – -41% identified heavy volume of information to manage -37% indentified information held in multiple, isolated databases and spreadsheets -34% identified constant changes in the supply chain -34 % identified the complex nature of the supply chain 8
  9. 9. Best-in-class companies have gained significant improvements … when it comes tocollaborative processes…This ensures that they will continue moving toward integrateddemand-supply networks. This trend is bolstered by the rising importance of this process[collaboration] for succeeding in the multi-enterprise supply chain.Also notice how the perspective shifts from inward and one-to-one focus to expand toinclude your network of partners and increased collaboration.As the extended network grows and strengthens it will push the focus on capabilities andcollaboration. This will in turn increase the likelihood of outsourcing to partners that havedeveloped best practice capabilities – it gives new meaning to ‘best-of-breed’. Look at GSIexample – it started as a 3PL company supporting QVC licensed sports memorabilia andnow it is acquiring the customer facing capabilities – the latest acquisition is Fanatics sportsstores. 9
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  12. 12. A review of Pursuits. 12
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