Strategic Supply Chain Management - Supply Chain Online

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216 Strategic Supply Chain Management As CPM evolves, we expect to see the following changes: ◆ ◆ ◆ ◆ ◆ ◆ ◆ Organizations will use consistent supply chain metrics and definitions based on industry standards such as PMG’s supply chain scorecard. As these standards are embraced, ERP vendors will make performance monitoring and reporting capabilities a basic part of their solutions. Companies will develop integrated, enterprisewide performancemanagement systems. Supply chain, CRM, product life-cycle management, and other functional performance management strategies will be designed within the context of this integrated whole. The architecture for business intelligence solutions will be based on a comprehensive approach to corporate performance management, of which supply chain performance management will be a key element. Event management systems—which monitor business events in real time and notify users of exceptions and alerts—will become increasingly prevalent, allowing companies to react more quickly to changes in the marketplace. Companies will see a growing consensus on how often key metrics should be monitored. Real-time reporting will be reserved for real-time processes. “Dashboards” will be replaced by tools with greater functionality. These tools will enable decisions based on current business conditions.
General Motors Profile: Driving Customer Satisfaction Faced with declining market share and a changing industry, General Motors (GM) launched an ambitious effort that transformed its supply chain and made customer satisfaction a priority. In the late 1990s, the Internet seemed poised to transform the automobile industry. Consumers armed with information could quickly compare prices, options, quality, and service—and make more informed choices. New business models threatened to squeeze industry margins and disrupt the long-standing original equipment manufacturer (OEM)-dealer relationship. General Motors observed these changes warily. The world’s largest vehicle manufacturer, GM has revenue of $185.5 billion, production facilities in 32 countries, and a workforce of about 325,000. In 2003, the company sold more than 8.6 million cars and trucks—about 15 percent of the global vehicle market. Despite its size and clout, though, GM had seen its global market share erode from 17.7 percent in the early 1990s to 15 percent in 2002 mainly due to declining levels of customer satisfaction and competition from foreign imports. The industry had changed. In the 1970s and 1980s, GM alone decided what products to make— with little input from dealers or customers. Explains Harold Kutner, group vice president of worldwide purchasing and production control and logistics at the time, “We were an arrogant company. We had an attitude of ‘we’ll make it, and the customer will take it.’” This attitude typified the “Big Three” automakers at the time. Running plants at full capacity was the name 217 Copyright © 2005 by The McGraw-Hill Companies, Inc. Click here for terms of use.
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Copyright © 2005 by The McGraw-Hil
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viii CONTENTS OWENS CORNING PROFILE
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x FOREWORD now it has to be brought
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xii FOREWORD Another “early adopt
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xiv FOREWORD through research, use,
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xvi FOREWORD on its promise. Is thi
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xviii ACKNOWLEDGMENTS owe thanks to
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2 Strategic Supply Chain Management
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10 Strategic Supply Chain Managemen
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100 Strategic Supply Chain Manageme
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Stage 4: Cross-Enterprise Collabora
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FIGURE B-3 Summary results of popul
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308 Index Business strategy: metric
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310 Index F Faught, Laura, 175-176
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312 Index Mexico, 96, 196 Michelin,
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314 Index Regional planning group,
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316 Index Toys “R” Us, 53 Trace
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