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Beyond Supply Chain - to the Networked Enterprise
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Author: Charles Poirier

Summary:
So you’ve been working on supply chain for several years now. You’ve made progress and can point to some significant savings in direct and indirect sourcing costs. Cycle times are down and you’ve pushed inventories onto obliging suppliers. Your logistics system has been improved and transportation and warehousing costs reduced. Order entry is moving beyond EDI to e-Commerce, but a lot of order processing is still done through the mail, over the telephone, and with a lot of expediting. New product introductions are getting to market sooner and with a somewhat higher acceptance rate. The IT department has become a useful tool in achieving success with enabling software and systems.
Available-to-promise capability and online visibility of materials and finished products are on the radar screen, but not quite operational. Customer relationship management is right around the corner. The supply base has been reduced and costs wrung out of those remaining vendors, but it’s getting difficult to secure anywhere near the same level of year-on-year savings. You’ve even developed metrics to document the savings, and some measures show how you’re better at pleasing the most important customers. You’ve broken down the internal walls between business units and a few functions are even co-operating once in a while.
Where do you go to get more savings? What’s the next level of improvement? How do you shift a successful effort for more progress?
The answers come from a transition to the mindset driving the firm.



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