Strategic Supply Chain Management - Supply Chain Online

CHAPTER 2 Core Discipline 2: Develop an End-to-End Process Architecture 57
FIGURE 2–3
Collaborative planning within the enterprise.
• On Time Delivery
• Cash-to-Cash Cycle Time
• Order Fulfillment Lead Time
• Supply Chain Management Cost
Suppliers
Purchasing
Plan
Manufacturing Logistics Sales
Plan Plan Plan Plan
Source Make Deliver Deliver
Customers
• Purchase
Price
Variance
• Unit Prod. • Logistics
Cost
Costs
• Utilization • Schedule
Rate Adherence
Internal Integration
• Order
Quality
• Order
Cycle Time
was no inventory visibility at the regional level, and there could be a shortage
in one country and excess inventory in another for the same product.
In addition, although each region was up and running on the worldwide
ERP implementation, different countries used their own stand-alone information
systems to manage warehousing and transportation.
To put in place an end-to-end management capability, the company
had to redesign its supply chain processes and embrace many new practices.
One of the first goals was to make better use of the ERP system by
consolidating country-level inventory data into a single database to provide
inventory visibility at the regional level. Given the promotion-driven
nature and short product life cycles of consumer electronics, the company
also focused on shortening order-fulfillment times. By consolidating
product-customization activities—previously done in each country—into
one regional center and shipping directly to customers, the company was
able to shorten lead times and eliminate the need for country-based
inventories.
The company reduced the supply chain planning cycle dramatically
by redefining the sales forecasting and supply planning processes. The
previous processes were based on monthly cycles and provided limited
visibility into actual customer demand patterns. The project team set up a
weekly cross-functional supply chain planning process using the existing