Design the Supply Chain
Every good supply chain design needs to address collaboration with supply chain partners as well as delivering value using supply chain information technology and proper methods of acquiring and managing data.
Technology design
Since the technology has become the powerful force that extends supply chain visibility across multiply tiers while providing world-shrinking velocity, it deserves serious consideration as an aid to achieving strategic objectives. Its beneficial to weigh the advantages and disadvantages of technology.
There is a lot to choose from, including technology that can increase the velocity and accuracy of information flows, checkout process, inventory tracking, production scheduling – virtually any process of any length inside the supply chain. Whatever the process your are aiming to improve, technology can almost certain help. But it has to be selected by specialists who know what is current and can guide process stakeholders in choosing the right hardware and software at the right price to conform to overall strategy. The collateral effects of new technology have to be taken into account as well. The theory of constraints tells us that there is no point in buying expensive hardware and software to speed up the flow of information, materials, or payments if they will just be sent speeding into a bottleneck (or constraint) that will stop their progress. Most importantly, each organization needs the right technology applied to the right process by the right people.
A supply chain is a set of processes, and they can be fine-tuned to suit each customer segment. When planning improvement initiatives, select the processes that are central to the supply chain strategy , measure and benchmark them, and focus your attention on one process or a small manageable number of processes. Customer information flows through the organisation and the extended enterprise via orders, sales activity and forecasts. As products and material are procured, a value-added flow of goods begins. Understanding how these flows touche many internal and external parties helps supply chain managers determine who will be affected by a supply chain design and thus who needs to be involved in the design effort.
Organisational strategy
Like all other parts of the supply chain, supply chain design for all information systems and technology should be based on, and aligned with, the organisation’s overall strategy. If a company’s focus changes, the information system architecture should then be changed of upgraded to facilitate the new supply chain strategy.
Information strategy
The information strategy translates the organizations’s strategy into commitments to treat information systems as strategic investments, and it sets guiding principles, priorities, and common goals for network design. The results of the information strategy are reflected in a high-level end-to-end vision of the information systems structure. Similarly, the extended supply chain strategy is translated into a strategic vision for the extended supply chain. A gap analysis is performed with key willing partners to compare the existing systems of supply chain partners with what is envisioned, and a model for the extnded enterprise is developed with partners to resolve existing gaps
Information content definition
Information content definition involves making decisions on what data needs to be collected, how it will be collected, how its accuracy will be maintained, and how it will be stored, accesses, controlled, and analyzed. For the extended supply chain it involves business modeling, which maps the dynamics and interactions of each supply chain partner. Extended supply chain business modelling includes decisions such as what market segments are being targeted, how preformance will be measured, how profits will be shared among partners, and how products will be distributed.
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