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Ibm Supply Chain

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* Supply Chain Management In IBM: * Early 1990’s: decentralized geographic and functional departments * Mid-late 1990’s: Distribution and logistics functions centralized into a global organization with world-wide responsibility * Early 2000’s: merger of Customer Fulfillment, Procurement, Manufacturing, and Global Logistics/Distribution functions into a new global Integrated Supply Chain function * Result: cost savings of $5.6B in 2002 and $7B in 2003 * A Case study on IBM * IBM developed the supply chain professional career path in support of its evolving view of the supply chain itself. Specifically, IBM is transforming its supply chain into one that is on-demand. An on-demand supply chain is …show more content…

* To reinforce enterprise collaboration, changes were made to the measurement system. IBM previously measured execution solely within the supply chain business functions, such as logistics and procurement. If logistics met its commitments, the logistics team was happy. Today, the entire ISC must achieve integrated goals such as meeting or exceeding customer expectations when completing orders. In other words, the traditional methods of evaluating performance, such as time to market, were no longer sufficient. IBM also needed to capture critical quantitative data across and between functions as well as qualitative insight into their supplier and partner relationships. IBM adapted its measurement system to support the dynamics of a truly end-to-end operation. * By now, there’s no doubt that the supply chain will continue to be a driving force in the business. As a result of the management and measurement changes, IBM’s inventory is at the lowest it’s been in more than 30 years. Further, the ISC reduced supply chain expenses by nearly $300 million in 2004. The reduced assets and expenses provided cash that could be used for acquisitions to make IBM more competitive. In addition, the IBM sales team opened up about 25 percent of their time to uncover new client opportunities because of reduced time required to follow-up on orders. * Career Path Skills
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