Strategic Supply Chain Management - Supply Chain Online

CHAPTER 2 Core Discipline 2: Develop an End-to-End Process Architecture 59
challenging than defining and implementing new practices and information
systems. It’s critical that companies take the time to define those
shared objectives, whether for internal integration among functions or for
external integration with customers and suppliers. Without shared objectives,
it doesn’t make sense to invest in end-to-end processes.
When a supply chain architecture meets the test of end-to-end focus
◆ Processes and supporting information
systems are integrated within
Without shared
and beyond the enterprise—reaching
key suppliers and customers. objectives, it doesn’t
◆ Supply chain resources such as
make sense to invest
capacity and inventory are optimized
across the organization and in end-to-end
with key suppliers and customers.
processes.
◆ Standard metrics and quantitative
objectives are shared across the
organization and with key suppliers and customers.
◆ Performance visibility and management are shared across the
organization and with key suppliers and customers.
Simplicity
Complex supply chains are hard to understand, improve, and manage
because complexity obstructs the “line of sight” needed to identify what
is and what is not working. The costs and risks of complexity are highest
when companies integrate their processes and systems with those of their
customers and suppliers. When effective supply chain management is
dependent on managing beyond your company’s borders, each process,
data element, and system must be clearly defined and agreed to. And if
your internal processes, data, and systems are complex or convoluted, the
likelihood of your being able to reach consensus with your supply chain
partners is greatly reduced. Simplicity is the solution. But before we see
how this complexity can be simplified, let’s examine the different drivers
of complexity. We see four:
◆ Supply chain configuration
◆ Product and service proliferation
◆ Process and information systems inconsistency
◆ Overautomation