Stage 3 supply chains are characterised by:
• full systems visibility from distribution through to
purchasing;
• medium-term planning;
• the focus on tactical rather than strategic issues;
• an emphasis on efficiency rather than effectiveness
— ensuring what is done is done well, rather than
ensuring that the right thing is done;
• extensive use of electronic data interchange to
support the customer link and facilitate a faster
response,
• reacting to customer demand rather than
"managing" the customer.
It is not until Stage 4 that full supply chain integration is
achieved by extending the scope of integration outside the
company to embrace suppliers and customers.
The significance of this development goes beyond just
scale alone. It embodies a change of focus; away from
being product-orientated to being customer-orientated,
penetrating deep into the customer organisation to
understand the products, culture, market and organisation.
This should ensure that the company is attuned to the
customer's needs and requirements.Integration back down the supply chain to include suppliers
also represents more than just a change of scope — it
represents a change in attitude, away from the adversarial
attitude of conflict to one of mutual support and cooperation.
Co-operation starts at the early stages of
product development and encompasses full management
involvement at all levels; the supply of high quality products
shipped direct to the line on-time; shared product, process
and specification change information; technology exchange
and design support, and above all, long-term commitment,
which usually means the elimination of multiple sourcing.