Leading companies speak out on the need for supply chain visibility and response
At the recent AMR Supply Chain Executive Conference (see summary here), many of the world’s leading companies spoke out on the need for supply chain visibility and the ability to sense and respond to change. In particular:
> Motorola presented highlights of their supply chain transformation and the view that technology cements the transformation. Without a single source of data, people will drift to their own processes.
> Cisco talked about “managing uncertainty and turning it into a competitive advantage.” They have adapted lean to an outsourced manufacturing environment. To do this required real-time visibility into every aspect of the supply chain. They view their end-to-end near real-time global visibility as the foundation of a responsive supply chain.
It was also stated that transparency is paramount to any multi-tier supply chain. The pace of change is driving this since there is little time to make major decisions anymore.
AMR commented that on average, a company has 38 contract manufacturer relationships and 5 supply chains. There is a move toward consolidation and deeper relationships.
It’s clear that the globalization of supply chains combined with the increasing competition has made it a mandate to ensure a responsive supply chain. Brand owners have become virtual enterprises of 3rd parties responsible for the manufacturing of products while still retaining accountability for the result.
The key to success is ensuring that key decision makers throughout the organization have global visibility and tools to collaboratively coordinate a rapid and accurate response to any unanticipated event that occurs.
