Supply networks visibility

Strategic plans Supply network design Product rollovers and product pricing Product variety Supply chain visibility... 

In spite of the great opportunities provided by supply chain visibility and workflow automation the true potential of e-supply chain can only be realized when it is supported by an executive decision-making process that optimizes the automated flow of materials based on the information available from supply chain visibility. This executive decision process is collaborative planning which can only be effective through a real-time coimnunication network via Intranet, Extranet and B2B portals (or trading hubs) and a sales and operations planning (S OP) process. Figure 12.2 show the e-supply chain communication network of a pharmaceutical company. The S OP is described in Chapter 16. 

Supplier Relationship Management Key supply arrangements Standards, protocols e-Procurement Partnering in trust Network visibility Revenue development VMI Joint strategies/planning... 

One company that has recognised the importance of improving supply chain visibility through shared information is Cisco Systems, a market leader in telecommunications and network equipment (see below). 

In essence, this means applying the pyramid of key factors that we outlined in section 6.2. Minimising delays, inventories, defects and downtime supports the flow of value in the supply network. Simplicity and visibility are the foundations to achieving these key factors. 

There are many aspects which effects customer service. Some of them are directiy influenced by the structure of the distribution network [3] response time, product variety, product availability, customer experience, time to market, order visibility, and retumability. These factors, as explained below, affect supply chain network design decisions. 

Yuksel I, Dagdeviren M (2007) Using the anal5rtic network process (ANP) in a SWOT analysis—a case study for a textile firm. Inf Sci 177(16) 3364—3382 Zhang AN, Goh M, Meng F (2011) Conceptual modelhng for supply chain inventory visibility. Int J Prod Econ 133(2) 578-585... 

The extended supply chain supported by e-supply chain network and CPFR systems can only be effective if the S OP process of the OEMs also include key suppliers and customers. The visibility and instant access of supply chain data and targets by stakeholders will only be more productive when the plans and their exceptions are reviewed and agreed as part of the S OP process. 

Supply capability is reviewed in the advanced levels with respect to the firm s core competencies and its value chain partners, and decisions made as to which partner should perform which process steps. In the most advanced levels, flexible response systems that do not interfere with overall supply chain efficiency are created. There is much lower variability in the network as all parties work together through an online extranet to instantly review what is occurring and where changes must be made. Constraints in the system are eliminated or under control as the end-to-end partners link their ERP systems in order to make visible what is occurring across the full network. 

To gain this visibility and a better awareness of how to solve the problem, the IT departments must now step forward and achieve a return on their investments in ERP. To date, few business organizations have used these systems to effectively improve supply chain performance. The opportunity is now at hand. When connected, ERP systems will provide the data integration needed for network response. Planners will be able to access what they need to improve forecast accuracy and plan closer to actual needs, buyers will be able to lower the amount of stock ordered... 

The effect of storage supply is well visible in these CDF plots and can be quantified. For example, when full input capacity is available, probability to get less than 80% of demanded gas is rather low and is estimated to be 1.2E-03 per year even if storage is unavailable (Table 6). However, if Node 32 supply capacity is reduced to 10 mcm per day (almost 50% reduction) then probability to get less than 66% of the demanded gas reaches one at time step 3 (after 60 days). The results are available for each node, however they are most interesting at the total network level. 

Determined not to see a repeat of this catastrophic event - the size of the inventory write-off created a new world record and led to a major financial setback for the company - Cisco set out to build a state of the art communications network to enable information to be shared across the extended enterprise of their major tier 1 suppliers and logistics service providers. This has been achieved through the creation of an e-hub . The purpose of the e-hub is to act as the nerve centre and to ensure real-time visibility of demand, inventory levels and production schedules. Through its event management capability it can provide early warning of supply chain problems. 

As a result of its investment in creating supply chain wide visibility through shared information, Cisco has enabled a highly synchronised network of global partners to act as if they were a single business. 

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