There has been much said in recent years with regard to value creation opportunities available through supply chain collaboration. While easily pontificated and occasionally explored, true market-level collaboration has yet to find its way to the forefront of most supply chain business models. Our historical model of proprietary control over our supply chain processes relegates us to the upside limits of internal optimization. With vendors and service providers also looking to control their own destiny based on what they own, our collective ability to shape the components into an outcome where the whole is greater than the sum of the parts is virtually non-existent. As supply chain professionals, why should we care to collaborate? For decades our drive to optimize what we control in support of our company’s objectives has been considered good enough, leading edge and best in class. Why should we consider a change in our overall strategy now? Global impacts affecting our supply chain people and processes are rapidly occurring. Shifting population growth, volatile costs for fuel, forecasted global inflation, driver shortages, manufacturing and sourcing shifts, capacity constraints (real and planned), environmental impacts, shortage of supply chain talent and increasing legislative impacts are all real concerns with real consequences against our supply chain as a cost effective enabling capability. The ability to control and/or mitigate these impacts will require a new approach, one that reaches beyond internal optimization, positioning our companies to compete at the point of demand and utilizing supply chain parity across a leveraged playing field with partners, and in some cases, competitors. What is to be gained in driving a paradigm shift from the competitive advantage of yesterday to competitive parity tomorrow? The benefits of optimizing your supply chain in combination with the capacity, volume and processes of others around you include bottom line savings, cost avoidance opportunities and improved talent management. Included in these value drivers are: reduction of empty miles; improved utilization of assets; increased backhaul revenue; increased capacity; improved fixed versus variable costs; improved security capability; leveraged management; and increased flexibility/adaptability in driving the quality, speed and cost attributes of integrated supply chain end-to-end processes. While potential benefits resulting from collaboration are easily quantifiable, the challenges of getting to the collaboration table are extreme, timeconsuming and often times frustratingly slow. This is particularly true if one of the interested parties is perceived as a significant power at the table with much to gain in having control of the collaboration process in and of itself. Mistrust and suspicion are often prevalent and one or both can certainly be non-starters. Despite the challenges, the potential benefits are worth the effort. Supply chain leaders must approach the opportunity with a new mental framework embracing the art of the possible in owning the process without owning the work. The transparency is critical and must be the foundation for the fair and equitable leveraging of benefits for all parties. The use of an independent “opportunity broker” or third-party provider is an option in bringing parties to the table and getting the dialogue started. Start small in demonstrating the value while building trusted relationships. While it will not be easy, our ability to discover and deliver untapped benefits through collaboration will be critical in positioning our supply chain for what we know is coming and in preparing to respond to what is not yet known. The time for consternation and procrastination is over. As the world around us continues to transform at an incredible pace, supply chain leaders must also transform in embracing the new reality and the next evolution of opportunity. It will be the supply chain leaders who can break through the barriers to effective collaboration benefits that will best position their company for success in the new and ever changing world order
Global Supply Chains and the Need for Collaboration The rise of globalization along with global sourcing and global markets has made global supply chains ever longer, more complex and harder to manage. Now, even local events can have an immediate impact on a company’s global supply chain. A natural disaster in Japan, a conflict in North Africa or political unrest in the Middle East – the need to quickly retool and reconfigure global supply chains is bigger than ever. As we push on into the 21st century, supply chain agility will increasingly rely on interconnectedness and collaboration because companies no longer operate as single entities, but as highly connected business networks. The world of global supply chains and logistics is defined by intercompany collaboration and information sharing. The Challenge of Collaboration But collaboration is not easy as it relies not just on the will to do so, but also a fast, current flow of information between business partners up and down a supply chain. The tricky part comes when you try to get access to that 80% of crucial supply chain data that is locked up in the proprietary IT systems of companies you are doing business with, however briefly. The business software systems that companies have been buying for the past 35 years were designed to do essentially one thing: automate the processes within the four walls of a single company. They were not designed to handle the processes that occur daily between companies. This is especially problematic for companies conducting business on a global scale today since global trade involves significantly more process complexity than “local sourcing” practices. To be competitive and efficient, companies – even the smallest companies – must be ready to source and conduct business globally. Smart systems that can handle intercompany data exchange are absolutely crucial to the smooth functioning of these businesses and their dynamic trading communities. There have been several approaches to managing intercompany data exchange and collaboration over the years, but they all had crucial weaknesses: • EDI: Only works in pockets (key transaction) because it is too expensive, inflexible and does not support collaborative processes (only transactional processes). • Hub-and-Spoke “collaboration web portal”: In this approach, a single company owns and runs a web-based portal that each business partner has to integrate with to collaborate. This approach is not scalable. For example, a 3PL doing business with hundreds of companies would have to log into hundreds such portals. Neither approach creates a comprehensive value chain view. As a result, supply chain visibility and collaboration remains one of the largest unmet needs and value opportunities in supply chain management. Cloud Computing But there is some good news. And that is cloud computing, which is changing the rules in IT. Cloud breaks the traditional IT model of investing in and managing software and systems directly in or very close to the place where physical business is being done. It does this by putting software and systems on the Internet. Companies access the services remotely and pay for them as a service as they go based on what they use and when they use it. In that way, cloud computing translates into much better IT economics. Cloud-based Supply Chain Collaboration Platforms When it comes to supply chains, however, where the focus is on intercompany coordination and collaboration among hundreds of companies on a global scale, cloud computing becomes more than just “very good” IT economics; it becomes the means by which entirely new information sharing models suddenly become possible. In the same way that social networks like LinkedIn or Facebook inverted the traditional models of personal contact systems by giving each person in a network just one profile page to which all friends would point (and thus allow everyone in the network to be updated immediately the moment that single page is changed), next-generation collaboration platforms are designed to support trading partner networks that must operate on a daily basis around “single page” instances of common supply chain objects like purchase orders, shipments, SKUs, milestone events, or commodity codes and city names. Imagine the power of an information model that allows an object to be updated once, in one place, for everyone who needs and is authorized to know about that object to get the full news immediately. With the data available on the network, companies can run “what if” scenarios and make informed choices about changes on the basis 21 of landed costs, customs issues, delivery times and local markets. Then they can manage their businessto-business relationships crucial to executing those decisions through a web-based supply chain “control tower”. A Supply Chain Control Tower This control tower automates and monitors hundreds of interbusiness operational processes in trade and logistics – from purchase-to-pay to origin operations and shipment planning, to destination operations and customer order fulfillment. The technology is radically different from traditional business software systems in that it combines web-based software applications designed for business-to-business collaboration with technology to launch and manage private, permissionsbased “virtual” trading communities across an in-place electronically integrated partner data grid. Neutral, robust, secure and hosted in the cloud, they are the “single version of truth” system that enables, for the first time ever, massively scalable information sharing across a diverse and distributed trade community. Such cloud-based platforms give companies a rapid, low-cost way to automate and manage hundreds of intercompany supply chain processes on a global scale – w
มีได้ได้มากว่า ในปีที่ผ่านมาเกี่ยวกับค่าสร้างโอกาสโดยความร่วมมือของโซ่อุปทาน Pontificated ง่าย และบางครั้ง explored ความร่วมมือระดับตลาดจริงได้ยังหาทางให้ส่วนสำคัญของห่วงโซ่อุปทานส่วนใหญ่รูปแบบธุรกิจ รุ่นประวัติศาสตร์ของเราเป็นกรรมสิทธิ์ของกระบวนการห่วงโซ่อุปทานของเรา relegates เราจะกลับหัวกลับหางจำกัดของภายใน กับผู้ขายและผู้ให้บริการ ยัง มองการควบคุมชะตากรรมของตนเองตามที่พวกเขาเอง สามารถรวมรูปร่างส่วนประกอบที่เป็นผลมากกว่าผลรวมของส่วนที่เป็นจริงไม่มีอยู่ทั้งหมด เป็นผู้เชี่ยวชาญห่วงโซ่อุปทาน ทำไมควรเราดูแลการทำงานร่วมกันหรือไม่ สำหรับทศวรรษที่ผ่านมา เราขับรถไปปรับอะไรที่เราควบคุมสนับสนุนวัตถุประสงค์ของบริษัทของเราได้รับการพิจารณาดีพอ ชั้นนำและดีที่สุดในชั้นเรียน ทำไมเราควรเปลี่ยนแปลงในกลยุทธ์โดยรวมของเราตอนนี้ อย่างรวดเร็วจะเกิดผลกระทบต่อทั่วโลกส่งผลกระทบต่อคนห่วงโซ่อุปทานและกระบวนการของเรา ขยับอัตราการเติบโต ต้นทุนผันผวนสำหรับน้ำมันเชื้อเพลิง การคาดการณ์อัตราเงินเฟ้อทั่วโลก โปรแกรมควบคุมขาดแคลน ผลิต และจัดหากะ ข้อจำกัดของกำลังการผลิต (จริง และวางแผน), ผลกระทบต่อสิ่งแวดล้อม ขาดแคลนจัดหาความสามารถพิเศษโซ่ และเพิ่มผลกระทบต่อสภากังวลจริงทั้งหมดกับผลจริงกับโซ่ของเราเป็นความคุ้มค่าเปิดใช้งานความสามารถในการ ความสามารถในการควบคุม หรือบรรเทาผลกระทบเหล่านี้จะต้องใช้วิธีการแบบใหม่ ที่เหลือนอกเหนือจากการเพิ่มประสิทธิภาพภายใน ตำแหน่งของเราให้บริษัทแข่งขันณขณะที่ความต้องการ และใช้พาริตี้ของห่วงโซ่อุปทานข้ามเขตข้อมูลเล่น leveraged คู่ และ ในบาง กรณี คู่แข่ง อะไรจะได้รับในการขับขี่กระบวนทัศน์จากศักยภาพของเมื่อวานนี้เพื่อพาริตี้แข่งขันวันพรุ่งนี้ ประโยชน์ของการเพิ่มประสิทธิภาพของซัพพลายเชนร่วมกับกำลังการผลิต ปริมาณ และกระบวนการของคุณรวมถึงประหยัดบรรทัดด้านล่าง โอกาสหลีกเลี่ยงต้นทุนและการจัดการความสามารถปรับปรุง รวมอยู่ในโปรแกรมควบคุมค่าเหล่านี้ได้: ลดไมล์ว่าง เพิ่มการใช้ประโยชน์ของสินทรัพย์ backhaul ทำเพิ่มรายได้ กำลังการผลิตเพิ่มขึ้น ปรับปรุงคงเทียบกับต้นทุนผันแปร ความสามารถในการปรับปรุงความปลอดภัย จัดการ leveraged และความยืดหยุ่นเพิ่มขึ้นหลากหลายในคุณภาพ ขับรถเร็ว และต้นทุนลักษณะของห่วงโซ่อุปทานแบบบูรณาการกระบวนการสิ้นสุดเพื่อสิ้นสุด ในขณะที่ผลประโยชน์ที่อาจเกิดจากความร่วมมือวัดปริมาณได้ง่าย ความท้าทายของการทำตารางการทำงานร่วมกันมีมาก timeconsuming และบ่อยครั้งที่ frustratingly ช้า นี้เป็นจริงโดยเฉพาะอย่างยิ่งถ้าสนใจหนึ่งถือว่าเป็นกำลังสำคัญในตาราง มีมากได้ มีการควบคุมการทำงานร่วมกันใน และ ของตัวเอง Mistrust และยกย่องมักแพร่หลาย และหนึ่งหรือทั้งสองอย่างแน่นอนอาจไม่ใช่อย่า แม้ มีความท้าทาย เกิดประโยชน์คุ้มค่าความพยายาม นำห่วงโซ่อุปทานต้องเข้าหาโอกาสกับกรอบจิตใหม่ในบรรดาศิลปะการสุดในกระบวนการที่เป็นเจ้าของโดยเจ้าของงาน โปร่งเป็นสิ่งสำคัญ และต้องเป็นรากฐานสำหรับการเสมอภาคเป็นธรรม และใช้ประโยชน์สำหรับทุกฝ่าย ใช้ของ "นายหน้าโอกาส" อิสระหรือผู้ให้บริการบุคคลที่สามเป็นตัวเลือกในการนำบุคคลในตาราง และได้รับกล่องโต้ตอบเริ่มต้น เริ่มเล็กเห็นค่าในขณะที่สร้างความสัมพันธ์ที่เชื่อถือได้ ในขณะที่มันจะไม่ใช่เรื่องง่าย สามารถค้นพบ และใช้ประโยชน์ร่วมมือจัดส่งจะสำคัญในตำแหน่ง โซ่ของเราสำหรับสิ่งที่เรารู้มา และในการเตรียมการตอบสนองที่ไม่ได้ทราบ เวลาสำหรับ consternation และ procrastination ผ่านได้ กับโลกรอบตัวเรายังแปลงที่ก้าวเหลือเชื่อ ซัพพลายเชนที่ผู้นำยังต้องแปลงในบรรดาความเป็นจริงใหม่และวิวัฒนาการต่อไปโอกาส จะนำห่วงโซ่อุปทานที่สามารถตัดผ่านอุปสรรคมีประสิทธิภาพเพื่อผลประโยชน์ร่วมกันที่จะดีที่สุดตำแหน่งของบริษัทประสบความสำเร็จในใหม่และเคยเปลี่ยนโลกสั่งGlobal Supply Chains and the Need for Collaboration The rise of globalization along with global sourcing and global markets has made global supply chains ever longer, more complex and harder to manage. Now, even local events can have an immediate impact on a company’s global supply chain. A natural disaster in Japan, a conflict in North Africa or political unrest in the Middle East – the need to quickly retool and reconfigure global supply chains is bigger than ever. As we push on into the 21st century, supply chain agility will increasingly rely on interconnectedness and collaboration because companies no longer operate as single entities, but as highly connected business networks. The world of global supply chains and logistics is defined by intercompany collaboration and information sharing. The Challenge of Collaboration But collaboration is not easy as it relies not just on the will to do so, but also a fast, current flow of information between business partners up and down a supply chain. The tricky part comes when you try to get access to that 80% of crucial supply chain data that is locked up in the proprietary IT systems of companies you are doing business with, however briefly. The business software systems that companies have been buying for the past 35 years were designed to do essentially one thing: automate the processes within the four walls of a single company. They were not designed to handle the processes that occur daily between companies. This is especially problematic for companies conducting business on a global scale today since global trade involves significantly more process complexity than “local sourcing” practices. To be competitive and efficient, companies – even the smallest companies – must be ready to source and conduct business globally. Smart systems that can handle intercompany data exchange are absolutely crucial to the smooth functioning of these businesses and their dynamic trading communities. There have been several approaches to managing intercompany data exchange and collaboration over the years, but they all had crucial weaknesses: • EDI: Only works in pockets (key transaction) because it is too expensive, inflexible and does not support collaborative processes (only transactional processes). • Hub-and-Spoke “collaboration web portal”: In this approach, a single company owns and runs a web-based portal that each business partner has to integrate with to collaborate. This approach is not scalable. For example, a 3PL doing business with hundreds of companies would have to log into hundreds such portals. Neither approach creates a comprehensive value chain view. As a result, supply chain visibility and collaboration remains one of the largest unmet needs and value opportunities in supply chain management. Cloud Computing But there is some good news. And that is cloud computing, which is changing the rules in IT. Cloud breaks the traditional IT model of investing in and managing software and systems directly in or very close to the place where physical business is being done. It does this by putting software and systems on the Internet. Companies access the services remotely and pay for them as a service as they go based on what they use and when they use it. In that way, cloud computing translates into much better IT economics. Cloud-based Supply Chain Collaboration Platforms When it comes to supply chains, however, where the focus is on intercompany coordination and collaboration among hundreds of companies on a global scale, cloud computing becomes more than just “very good” IT economics; it becomes the means by which entirely new information sharing models suddenly become possible. In the same way that social networks like LinkedIn or Facebook inverted the traditional models of personal contact systems by giving each person in a network just one profile page to which all friends would point (and thus allow everyone in the network to be updated immediately the moment that single page is changed), next-generation collaboration platforms are designed to support trading partner networks that must operate on a daily basis around “single page” instances of common supply chain objects like purchase orders, shipments, SKUs, milestone events, or commodity codes and city names. Imagine the power of an information model that allows an object to be updated once, in one place, for everyone who needs and is authorized to know about that object to get the full news immediately. With the data available on the network, companies can run “what if” scenarios and make informed choices about changes on the basis 21 of landed costs, customs issues, delivery times and local markets. Then they can manage their businessto-business relationships crucial to executing those decisions through a web-based supply chain “control tower”. A Supply Chain Control Tower This control tower automates and monitors hundreds of interbusiness operational processes in trade and logistics – from purchase-to-pay to origin operations and shipment planning, to destination operations and customer order fulfillment. The technology is radically different from traditional business software systems in that it combines web-based software applications designed for business-to-business collaboration with technology to launch and manage private, permissionsbased “virtual” trading communities across an in-place electronically integrated partner data grid. Neutral, robust, secure and hosted in the cloud, they are the “single version of truth” system that enables, for the first time ever, massively scalable information sharing across a diverse and distributed trade community. Such cloud-based platforms give companies a rapid, low-cost way to automate and manage hundreds of intercompany supply chain processes on a global scale – w
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