Preview

Bcg Report

Powerful Essays
Open Document
Open Document
11627 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bcg Report
The first in a series of special reports on operations in business

Special Report

Creating the Optimal Supply Chain

http://www.bcg.com • http://knowledge.wharton.upenn.edu

Contents
Creating the Optimal Supply Chain
As global competition and advancing technology render borders irrelevant and link companies more closely, supply chains — the network of suppliers, plants, distributors, retailers and others that participate in the sale, delivery and production of goods and services — are growing increasingly complex. No longer simply the domain of the warehouse manager or logistics director, supply chain management is viewed by most companies as a mission-critical element. In this special report, experts from Wharton and Boston Consulting Group (BCG) discuss strategies for maximizing the value of supply chains, avoiding inefficiencies, managing the omnipresent risk of disruption, and evaluating the pros and cons of supply chain enterprise systems.

‘You Can’t Manage What You Can’t Measure’: Maximizing Supply Chain Value

1

Low-cost country sourcing, outsourcing, customization, globalization and more are adding tremendous complexity to supply chains across the globe. But even as companies are rapidly adopting supply chain management strategies in an effort to keep up, experts from Wharton and BCG report that many still lag when it comes to measuring how well they are doing, and balancing the trade-offs involved in keeping service levels high and costs low.

Avoiding the Cost of Inefficiency: Coordination and Collaboration in Supply Chain Management

5

The process of getting the right product to the right place at the right time at the right price — the traditional touchstones of supply chain success — remains a challenging and often elusive goal. According to experts from BCG and Wharton, two key supply chain elements that are often taken for granted — coordination and collaboration — can mean the difference between the merely functioning and the profitable when

You May Also Find These Documents Helpful

  • Good Essays

    Res 320

    • 926 Words
    • 3 Pages

    In today’s global market that is changing rapidly companies need to keep up with demand and market strategies to stay competitive. Businesses need to develop a process that allows them to operate at lower costs, and develop its own identity to distinguish it from other competitors. Supply Chain Management (SCM) has become an intricate part of the company operations allowing them to rethink how to reorganize their operation so they can focus on the core competencies of the company. SCM focus is to improve the way a company uses its resources such as raw materials and how it is delivered to its customers. Any product offered by a company, there are normally a number of business partners involved in the supply chain, including the manufacturers, wholesalers, distributors and retailers and the most important partner in this…

    • 926 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    SCM401TRsp2015 1

    • 4526 Words
    • 18 Pages

    Fierce competition in today’s global markets, the introduction of short life cycle products, and the heightened customers expectations have forced the business enterprises to invest in, and focus attention on, their supply chains like never before. In industry after industry supply chains have been radically transformed over the last ten years. Initially the enablers for change were fast and cheap computer processing power along with standardized data communication. Recently the combination of enterprise information infrastructure and internet has paved the way for a variety of supply chain optimization technologies. In line with these developments, this course focuses on management and improvement of supply chain processes. The primary objectives of the course are:…

    • 4526 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    In order to remain competitive, a company must offer superior quality goods or services at the lowest prices possible. Supply chain enables a company to reduce the cost while increasing the efficiency. However, there are risks that are associated with such benefits. These issues should be properly addressed when a company is trying to rely heavily on supply chain management in order to stay competitive within its industry.…

    • 466 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Fireside Tire Company

    • 377 Words
    • 2 Pages

    References: Coyle, J., Langley, J.C., Gibson, B.J., Novack, R.A., and Bardi, E.J. (2008). Supply Chain Management: A logistics perspective. South-Western Publishing. Mason, Ohio…

    • 377 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The goal of this course is to cover high-level supply chain strategies and concepts while introducing the analytical tools necessary to solve supply chain problems. As the function of supply chain management is to design and manage the processes, assets, and flows of material and information required to satisfy customers’ demands. Supply logistics related costs account for 20-25% of a typical firm’s total cost. On the revenue side the supply chain decisions have a direct impact on the market penetration and customer service. Globalization of economy and electronic commerce has heightened the strategic importance and of supply chain management and created new opportunities for using supply chain strategy and planning as a competitive tool. Electronic commerce has not only created new distribution channels for consumers but also revolutionized the industrial marketplace by facilitating inter-firm communication and by creating efficient markets through trading communities. Moreover combination of enterprise information infrastructure and the Internet has paved the way for a variety of supply chain optimization technologies.…

    • 1561 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Project Procurement

    • 504 Words
    • 3 Pages

    With the increased globalization, competition and complexity in global supply chains, more companies have realized that supply chain management is critical to the optimal organizations overall operation. It is not longer just the responsibility of the warehouse manager and logistics director. In the past, many organizations didn’t manage their supply chains they left that up to the suppliers. Usually the supply chain planning, marketing, production and inventory management in most organizations operated as separate departments (Stevenson, 2009). Businesses have recognized the strategic importance and the need for effect and efficient supply chains in operations management (Stevenson, 2009).…

    • 504 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Chapter Summary 15,17,18

    • 862 Words
    • 4 Pages

    According to the chapter supply chains are seldom static. They are constantly changing and evolving as a result of strategic changes taking place within the firm, competitive actions, changes in technology, and shifts in targeted customers or in customers’ needs. Supply chain management (SCM) is now a fact of life. Increasingly managers, researchers, and educators recognize the importance of SCM as both a strategic and tactical weapon. However, the practice of supply chain management is ever changing. Initially, the supply chain was viewed as an entity that was primarily concerned with the upstream suppliers and supplier management. By the mid 1990s, there was a change in orientation. The focus has shifted from the upstream to the entire supply chain. As we move into the middle of the first decade of the 21st century, we are seeing another shift in focus from supply chain management to strategic supply chain management. As this transition takes, there is a strong need for researchers, managers, and educators to reassess the current and future stages of supply chain management with the goal of identifying, presenting, and implementing a new…

    • 862 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    organizational_planning

    • 325 Words
    • 3 Pages

    "We forge long-term partnerships with key customers that include supply chain management as an integral part of their strategy. Working in concert, we drive out cost, add value and function as an extension of their enterprise." (J.B. Hunt, 2014, Para. 1)…

    • 325 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Cis109

    • 1180 Words
    • 5 Pages

    Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain (Wailgum, 2012). Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains (Handfield, n.d.).…

    • 1180 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    B DOMESTIC EURO PE LATIN AM ASIA XX XX XX XX FILENAME HERE CMYK VERSION 00 As seen in S p e c i al Advertising Section Special Advertising Sections © Copyright The McGraw-Hill Companies, Inc. SUPPLY CHAIN EXCELLENCE TODAY’S BEST DRIVER OF BOTTOM-LINE PERFORMANCE A fter you’ve fiddled with labor costs, R&D, procurement, and such, if you’re looking for ways to boost financial performance (and who isn’t?)…

    • 3577 Words
    • 21 Pages
    Powerful Essays
  • Powerful Essays

    Ups-Hp Case Study

    • 2337 Words
    • 10 Pages

    The concept of supply chain is tightly linked to the concept of collaboration. A supply chain by nature involves the interaction of two or more firms, sharing resources, risks and capabilities and jointly working to achieve higher business performance. Therefore, companies involved in a supply chain structure must ensure collaboration among their partners by applying the following interventions :…

    • 2337 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    d. In general, different parts of the supply chain have objectives that are not aligned with…

    • 12473 Words
    • 50 Pages
    Powerful Essays
  • Powerful Essays

    A supply chain is a series of integrated processes within and across a company that produce a product or service to meet the demands of a consumer (Krajewski, et. al., 2013). Every company has a specific supply chain design and this design is implemented to meet the company’s competitive priorities. Supply chain management refers to the coordination of the company’s processes with those of customers and suppliers to match the flow of services, materials, and information with customer demand. In today’s global market companies are choosing to outsource many of their processes in order to save time and money. While outsourcing and decentralizing many supply processes may seem to be more cost effective, this will also come with many new challenges.…

    • 1589 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Coyle, J., Langley, C., Gibson, N., Novak, R., Bardi, E., (2009). Supply Chain Management; A Logistics Perspective. Ohio: South-Western Press. 9th Ed..…

    • 810 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    References: 1. Chopra, Sunil, “Designing the Distribution Network in a Supply Chain”, School of Management, Northwestern University, Edition-2001 Page no.23-28. 2. Chopra, Sunil and Peter Meindl. “Supply Chain Management: Strategy, Planning, Operation”. Prentice Hall, New Jersey. Edition-2001 Page no.27. 3. http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074408749&typ Resourees. Accessed on 12 Novemberb2011. 4. http://www.business-software.com/erp/supply-chain/benefits-of-supplychainerp.php.accessed on 12 November 2011.…

    • 4364 Words
    • 18 Pages
    Powerful Essays

Related Topics