"Proactive" visibility is what matters most in effectively managing supply chain disruptions, i.e., when companies get the right information when it matters, from all critical internal stakeholders, as well as external supply chain partners. Companies need to have event management capabilities to aid in this process.
The green imperative is expanding into virtually all walks of life and all facets of the economy. Demonstrating green credentials is increasingly a minimal stakeholder expectation and business risk management factor, and is shifting from an order-winning to an order-qualifying attribute. Swallow that carbon pill! A whole swath of additional environmental expectations may well be just around the corner, as well as a whole new way of looking at "green" and the environment.
The elongation of the supply chain on both ends of the spectrum has resulted in a phenomenon where companies are able to compete at a global level for customers. Companies that were previously handicapped by lack of channel partners, high levels of investment in advertising and marketing are able to leverage the internet and compete with their larger competitors. In other words, globalization has resulted in increased customer centricity.
Aberdeen's research shows point-of-sale transaction data from retail locations is still a hurdle for 66 percent of manufacturers. The low levels of transaction data sharing cause increased complexities in tracking promotion effectiveness at the store or field level.
Globalization and the economics of purchasing technology will continue to catalyze the growth for network platform and applications. Out of the rubble of the internet have come real industry solutions that address the ever complex supply networks that the enterprise must cope with. A new generation of savvy tech buyers will continue to be the primary purchaser for the networked solutions option.
In today's global business environment, managing supply-chain-wide information effectively is becoming critical to business success. Today's multi-enterprise supply chains require the "intelligent enterprise" to make optimal decisions not only within its four walls but as it relates to managing supply chain partners and distribution networks. To make optimal decisions across end-to-end supply chains, executives and mid-level managers require actionable insights and intelligence on tactical and strategic levels.
Multi-party SCM processes for large enterprises cannot be enabled fully through a traditional packaged application approach. There is a need for a comprehensive business process layer that ties existing investments in ERP or APS systems with add-on business components that can fill gaps in capabilities.
There is a tendency to begin discussions of supply chain optimization from the perspective of available business process management software. But to attain real success, companies should base their technology choices on the ability to manage those issues that really matter. In other words, the real starting point requires isolation and prioritization of the most important needs and variables.
[The views expressed herein are those of the author and do not necessarily reflect the views of Ernst & Young LLP]
Business process management will continue to be a topic of interest to supply chain companies in 2009. Because process change can be implemented without significant cash investments, BPM will stay fashionable in lean economic times. Adoption will be compartmental for a number of reasons: the economy, organizational politics and the lack of any vendor solution that completely meets business requirements.
The more information the sourcing and product development teams can share simultaneously, the more efficiently apparel manufacturers can serve their ever-changing customer needs. One way to make this possible is to establish organic integration through the fusion of sourcing and product lifecycle management within your existing enterprise framework.