Supply Chain,how it is done.
Most of the companies mentioned here are i2's clients I think.
Geeez Tom: I did say 'forgive' me didn't I?Sure rub it in.<g>
Now here is how it is all done.
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Source:(InfoWeek Editorial)
November 9, 1998
Supply Chain:
Streams To Ford
Remember that feeling you had when you were about 10 years old, standing at the edge of a fast-running stream, needing to somehow get to the other side and on your way home? On one side was the place you wanted to leave, on the other was the safety of home, and aligned in front of you across the stream were about a half-dozen slick, moss-covered rocks. With your heart pounding and your palms sweating, you swallowed your fear, stuck out your foot to take that first jittery, precarious step, andŠ.
Building a unique, innovative supply chain today requires that same willingness to overcome trepidation throughout the process and to take risks to achieve some well-deserved rewards. As associate editors Tom Stein and Jeff Sweat point out in this week's cover story on page 36, building a truly killer supply chain-one that doesn't just get products and parts from point A to point B but actually transforms and improves the way you do business-isn't for the faint of heart. But the rewards can be lucrative.
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Mohan:Meet some of i2's customers below-if I am wrong someone please correct me.
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Companies like Boeing, Thomson Consumer Electronics, Dayton Hudson, Dell Computer, Eastman Chemical, and Home Depot have taken those daring steps and dramatically improved forecasting accuracy, cut cycle times, lowered inventory costs, and in the process provided their customers with exceptional service that will keep them coming back with checkbook in hand.
What placed these companies, and others like them, ahead of competitors was a willingness to take risks and ignore cultural beliefs that said business practices such as sharing inventory and sales-trend data were strictly taboo. And, yes, it also took a financial gut check: These systems require significant dollar investments.
But the return, measured through lower inventory costs or product-development expenses, not to mention increased customer satisfaction, has made it worthwhile for these companies. Thomson, for example, is investing $35 million in its Chain Reaction IT project but expects to achieve forecasting accuracy of 95% and to keep its retailers' shelves stocked at all times with the kinds of products customers want to buy at prices they want to pay. And it's keeping Thomson's business partners happy, too. "The adversarial relationship between retailers, manufacturers, and suppliers is going away," says Terry Reuland, manager of supply-chain integration at Thomson.
Without that willingness to overcome the anxiety that comes with building a killer supply chain and having the guts to make it all the way through the process, companies run the risk of standing in place. And it could mean the difference between making it across the stream or slipping and tumbling into the icy-cold water.
What about you? Are you taking that first step, have you made it across, or are you in danger of slipping in? Let us know at the address below.
Brian Gillooly
Editor
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