BPM Strategies - March 2008 - (Page 9) insight. It is difficult to achieve this foundation without strong integration across all enterprise applications and communications systems. Without this integration capability enterprises cannot: Lower operating costs by improving operational efficiency Efficiently comply with new and stringent regulations Ensure real-time or near real-time supply chain information is available Understand the implications of an unfulfilled order on customer satisfaction. Segment customers to deliver premium service for the highest valued customers by prioritizing them and then reserving the most skilled agents for special customers Ensure that ease-of-use is across the enterprise, considering the disparity of sophistication among users Enable real-time inventory information to be displayed in-context on the users desktop Improved analytics is an additional characteristic of an agile supply chain. It allows enterprises to take superior service to the next level and provide competitive service by incorporating traditional metrics such as vendor report cards and logistics effectiveness. Additionally, enterprises can incorporate analytics that allow users to follow and measure inventory step-by-step through all sequential touch points from product design, and original sourcing, to delivery through the designated channel. An agile and integrated supply chain enables companies to gain business insight by answering questions such as: Which vendors consistently meet or exceed their KPIs for timeliness, responsiveness and quality? What are the key indicators for fluctuations in demand? What are the latest trends in customer demand? What logistics providers are most March 2008 responsive to an enterprise’s needs? Is the enterprise progressing toward a lean manufacturing model, and what remains to be done to achieve it? Summary Since BPM, BDM and SOA all support the practice of improving the efficiency and effectiveness of any organization by automating and optimizing the organization's business processes, they are key components of initiatives to produce a more customer-knowledgeable supply chain manager. BPM, BDM and SOA disciplines - and enabling technologies - can play a key role to support successful agile supply chain initiatives by not only providing easier access to information, but also automating critical processes and institutionalizing best practices across the supply chain. When implemented strategically, BPM, BDM and SOA enables the evolution of a well-connected “on-demand” enterprise based on the use of shared services, and easily customizable supply chain rules and processes where information and application silos can be bridged to deliver better visibility of fast-changing business events and critical information - and to lower operating costs. SOA transforms existing business computing assets into well-defined services. It can work effortlessly with BPM because of the reliance on services. When properly implemented, SOA opens a vast inventory of services for BPM to piece together into an all-inclusive flow of services. Tom Dwyer is the vice president of research for BrainStorm Group, the editorial director of BPMInstitute.org, an editorial board member for SOAInstitute.org and a co-chair of BrainStorm Group's SOAI conference series. He can be reached at tdwyer@bpminstitute.org. BPM, BDM and SOA are key components of initiatives to produce a more customerknowledgeable supply chain manager. 9 http://SOAInstitute.org
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