Chapter 9: Developing SCM Strategies

Question 0

Present Enterprise Strategy

Answer 0

Dynamic and demand-driven, there is no such thing as a sustainable advantage, indeed all advantages are temporary.

Question 1

Past Enterprise Strategy

Answer 1

Elegant plans to gain and sustain a competitive advantage continually solidifying and reinvesting to maintain the advantage in a relatively stable product environment.

Question 2

SCM Technology Deployment Strategy Requirements

Answer 2

• Companies capable of meeting the challenge of change management with effective IT-enabled networking strategies can gain great rewards.
• Fundamental SCM principle concerns the capability of channel network partners to integrate and synchronize the flow of goods, services, and information.
• SCM requires flexibility, agility, collaboration, and a focus on cross-enterprise processes.
• Lastly, a technology-enabled SCM value network is about dramatic shifts in company mindset.
• Nevertheless, designing an IT/SCM strategy can seem a daunting task.

Question 3

IT/SCM Leaders Energize Top Managers

Answer 3

• Educate about SCM and Technology
• Act as a Sponsor
• Develop a SCM Technology Strategy
• Develop the Firm’s HR
• Invest in Supply Chain Improvement

Question 4

Top Managers Energize Staff

Answer 4

• Enhance the Ways in Which People Work
• Build Powerful Multi-enterprise Processes and Appropriate IT Support
• Balance the Roles of People and Technology
• Manage Multi-enterprise Processes Flexibility and Dynamically
• Manage Knowledge Strategically
• Enhance Individual Effectiveness

Question 5

Developing a Vision for IT/SCM

“As-is” and “To-be”

Answer 5

What is the historical nature of the firm?
How has it traditionally approached the marketplace?
What processes add the most value to customers?
How have relationships with suppliers grown over time?
What is the nature of the internal organization?
What are the strengths and weaknesses of business partners?
What capabilities are the most important in creating and sustaining competitive advantage?

Question 6

Supply Chain Value Assessment
Identify and prioritize which technology initiatives will provide the greatest enterprise, customer, and trading partner benefits…

Answer 6

• Determine whether IT initiatives are evolutionary or revolutionary.
• Form a collaborative team of company and supply chain partners.
• Break down the findings into KPI’s and supply network opportunities.
• Match the findings with proposed SCM software applications.
• End result is a map of a detailed portfolio of possible SCM technology alternatives and their benefits.

Question 7

Scoping the Collaboration: Technical Level

Answer 7

1. Non-Internet Technologies
2. Visibility
3. Server-to-Server
4. Process Management

Question 8

Scoping the Collaboration: Potential Outsourcing Advantages

Answer 8

• Focus on Core Competencies
• Return on Assets
• Personnel Productivity
• Flexibility
• Customer Service
• Information Technology

Question 9

Implementing a Supply Chain Performance Program

Answer 9

• Establish a multi-business network performance measurement team.
• Ensure the measurements are in synch with the strategy.
• Ensure the channel measurements defined truly support customer satisfaction.
• Decompose the executive metrics into tactical measures and operational measures.
• Focus on only key supply chain measurements.
• Use information technologies to gather, process, and analyze the information received.
• Re-cycle! Be vigilant and pursue new measurement programs as SCM changes.