* 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 In the process of establishing this
The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.
Arntzen, B. C., G. G. Brown, T. P. Harrison, L. L. Trafton. 1995. Global supply chain management at Digital Corporation. Interfaces 25(1) 69-93.
Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential
When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?
Managed logistics, supply chain, and integrated logistics functions within a leading provider of services to the federal government. Supervised, trained, and evaluated team of over 20. Assisted Program Manager in quality assurance and operations leadership to meet all contractual requirements. Created comprehensive monthly data analysis, written reports and briefings, program plans/analyses, and others to support logistics and operational matters. Maintained supply and inventory control using Property Book Unit Supply Enhanced (PBUSE) system.
Supply-Chain Management is the activities that procure materials and services, and transform them into intermediate goods and final products and deliver them, through a distribution system (Heizer & Render, 2011, p. 452). DELL is a computer technology corporation that develops sells, repairs and supports, computers and computer related products. DELL has realized that supply chain is becoming more and more important for the success of today’s business world and they work accordingly to keep a competitive advantage in the market. This study will examine to what extent Dell has used supply chain management to gain and retain a competitive advantage in the computer market.
Within Logistics, there is a “Control Tower” and Distributor Connect” program that were with the intent to monitor all inbound or outbound activities within internal or external resources, it has since been able to effectively reduce deadhead moments. By bringing innovation into their supply chains to deliver better efficiency and lower cost, it is no surprise that P&G was ranked among the Top 5 in the award for Gartner Supply Chain Top 25. With the effective supply chain, it has help to keep hiking costs at bay, where P&G can price their product competitively; which ultimately spells benefit for the consumers.
Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.
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Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also
Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.
The concept of supply chain is tightly linked to the concept of collaboration. A supply chain by nature involves the interaction of two or more firms, sharing resources, risks and capabilities and jointly working to achieve higher business performance. Therefore, companies involved in a supply chain structure must ensure collaboration among their partners by applying the following interventions :
As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri
Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization?
In 1995, IBM reengineer and redesign its logistics and procurement and outsourced its activities if it could be done faster and cheaper. Within one year of reengineering, costs were down 20% and time needed to complete and confirm supply orders had decreased from average of 48 hours to 2.5 hours. By 2000, $370 Million were saved annually by procuring goods & services online (94%). Also, year-to-year growth in procurement volume increased by 60% between