Global Logistics and Supply Chain Strategies - September 2008 - (Page 38)

one area drives up costs in another. Such an exercise should be accompanied by the designation of a vice president of supply chain, whose high-level view will allow that individual to function as “a champion of working capital,” Grackin says. Richard Howells, senior director of solution marketing for supply chain management with Germany’s SAP AG, says companies are driving toward common business processes that can span departments and regions of the world. In response, SAP has been developing a suite of S&OP software that allows for crossfunctional demand and supply planning in collaboration with sales, field personnel and customers. The suite is built on a service-oriented architecture (SOA), the latest concept in software development for melding disparate software applications into one coherent system. Companies adopting best practices in the area of silo-busting are transforming themselves into demand-driven organizations, Howells says. On the retail side, Procter & Gamble focuses on two “moments of truth”—when a customer buys one of its products, and when the product is consumed. All processes within the company are geared toward satisfying those two basic actions. Companies looking for a place to begin with silo-busting might consider the area of procurement. Getting all employees on board with regard to vendor selection can be a daunting task. Various departments have their own ideas about which ones to use, and how much to pay. Corporate United, based in Cleveland, is a group purchasing organization that seeks to create master contracts at reduced prices, reaching across departmental boundaries. Vice president David Clevenger says that many of the company’s procurement contacts are relatively inexperienced and unable to enforce compliance across their organizations. In many cases, he says, the inter-company relationships “are flatly adversarial.” Clevenger urges that companies bring together all of the parties that might utilize a purchasing contract, with senior management ensuring cooperation. But change doesn’t happen overnight. Often it takes time for procurement to prove its value to functions such as marketing or information technology. “Some of those doors remain locked,” he says, “but far more are open than five to 10 years ago.” Once the benefits of cooperative purchasing become evident, reluctant elements of the company are likely to fall in line. Don’t expect silo-busting to get much easier. The growing complexity of global supply chains, coupled with the pressures caused by outsourcing, will continue to frustrate efforts to achieve internal harmony. Still, SAP’s Howells sees cause for hope. The existence of boundary-spanning business processes “is becoming the norm rather than the exception,” he says. “The breaking down of silos is only going to continue.” To access this article online, visit The Digital Edition at www.SupplyChainBrain.com. Resource Links Symphony Metreo, www.symphony-metreo.com Corporate United, www.corporateunited.com Exostar, www.exostar.com IBM, www.ibm.com Infosys, www.infosys.com Linksys, www.linksys.com Marsh, www.marsh.com SAS, www.sas.com SAP, www.sap.com 38 SEPTEMBER 2008 www.SupplyChainBrain.com http://bp.com/epcareers http://www.SupplyChainBrain.com http://www.SupplyChainBrain.com http://bp.com/epcareers http://www.infosys.com http://www.symphony-metreo.com http://www.linksys.com http://www.marsh.com http://www.corporateunited.com http://www.sas.com http://www.exostar.com http://www.sap.com http://www.ibm.com http://www.SupplyChainBrain.com

Table of Contents Feed for the Digital Edition of Global Logistics and Supply Chain Strategies - September 2008

Global Logistics and Supply Chain Strategies - August 2008 Contents Editorial GL&SCS Exclusive Fast Forward Up Front Cover Story: Free The Enterprise: Busting Silos in the Supply Chain Business Process Management Merits New Look fromCorporate Strategists Ships and Ports Explore Many Ways to Go Green The Right Information Should Help Avoid Any Kind of Risk Industry Voices

Global Logistics and Supply Chain Strategies - September 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.