What are some of the drawbacks with our current implementation strategy?
- The “network” that is required for visibility sometimes requires lower-tier suppliers, public warehouses, wholesalers, etc. to “log in” to several different networks (one for each “important” SCM Control Tower they deal with. We need a simple, reusable network approach to bring everyone into the tower. The solution lies in B2B Networks (VAN2). Extremely time critical communications could be accomplished by “texting” selected members of the Control Tower community, then following up with an EDI message.
- Is there too much dependence on humans making decisions? Cannot some of the decisions being made be better automated? Can't we use “decision support” technology to build automated responses at the back end of system?
The Supply Chain must have synchronized planning and execution across the entire supply chain. There is a need to coordinate demand variability, supply variability, constrained capacity, and lead time variability across suppliers, contract manufacturers, manufacturing, forward DC, retailer & etailer to the customer.
The extended supply chain is a complex animal. We do multiple channels for sourcing (branded, private label, etc). Then we need multiple channels for sales (stores, internet, mail/phone, resellers). We give customers more and more choices and sell differently in all kinds of ways and all kinds of new and exciting markets. We have all kinds of participants and we even have several kinds of businesses doing the selling (brands, acquisitions, franchisees).
From there it's necessary to look at fulfillment: supplier-to-DC, supplier-to-stores, DC-to-stores, forward stocking locations, partners, redeployment, and reverse logistics). The toughest to track are things off our radar screen like drop-ship, order status and shipment status. We cannot get around this complexity because the competition is doing it, so we have to replace complexity with visibility. Our SCM Control Tower must provide real time information so we can make instant decisions. Plus we must tie together logistics, planning, procurement and anyone else who gets touched by this complexity. A modern SCM Control Tower is not a “Load Control Center” and the tower includes a lot more than logistics. Last modified on Monday, 24 February 2014