To be honest, I'm a bit "greened out" at the moment. I feel like I did a few years ago, when RFID was all the rage. The first few months of RFID were exciting, learning about the technology and listening to executives at Walmart, Gillette (now P&G), and other early adopters talk about their ambitious plans. But as the months went by, there were fewer and fewer new developments to discuss or analyze. Every conference had the same set of speakers, and all the case studies (what few there were) started to sound the same. I think we've reached a similar plateau with green supply chain management.
The elongation of the supply chain on both ends of the spectrum has resulted in a phenomenon where companies are able to compete at a global level for customers. Companies that were previously handicapped by lack of channel partners, high levels of investment in advertising and marketing are able to leverage the internet and compete with their larger competitors. In other words, globalization has resulted in increased customer centricity.
Consumer products companies were early adopters of supply chain planning and supply chain execution. Most implementations are mature; yet in 2009, 24 percent of companies are considering switching supply chain planning vendors.
Corporate responsibility agendas revolve around a triple bottom line (TBL) framework geared to benefit: people, planet and profit. A great deal of business-focused, sustainability research emphasizes a transformation of business processes that support the goals of planet and profit and neglects the centrality of people in making it happen.
In today's global business environment, managing supply-chain-wide information effectively is becoming critical to business success. Today's multi-enterprise supply chains require the "intelligent enterprise" to make optimal decisions not only within its four walls but as it relates to managing supply chain partners and distribution networks. To make optimal decisions across end-to-end supply chains, executives and mid-level managers require actionable insights and intelligence on tactical and strategic levels.
There is a tendency to begin discussions of supply chain optimization from the perspective of available business process management software. But to attain real success, companies should base their technology choices on the ability to manage those issues that really matter. In other words, the real starting point requires isolation and prioritization of the most important needs and variables.
[The views expressed herein are those of the author and do not necessarily reflect the views of Ernst & Young LLP]
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