Sistemas de Informacin

para Manufactura

THE SMARTER SUPPLY CHAIN OF THE FUTURE

Fuente: IBM Global Chief Supply Chain Officer Study

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez

 Economic Volatility... The best summary of todays global
marketplace.
The global recession will
result in -1% real GDP 2009
Worldwide Real and Nominal GDP US and ROW GDP

7%

growth with -2% US growth

5%

6%
WW Nom GDP ROW Real GDP
4%

5%
3%
and the Rest of World
slightly positive
4% 2%

3% 1%
US Real GDP
2% 0%

1% WW Real GDP -1%

0% -2%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-3%
-1%

Source: Economic Assessments from Global Insight, IBM Finance and IPR, December 2008
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Supply chains continue to become more global and complex...

Increased Network Product Portfolio
Going Global
Complexities Turmoil

Businesses and supply Supply chains are involving Supply chains must contend
chains are becoming more more companies with rapidly expanding and
global over the last decade contracting portfolios

3X Between 1995 and 2007,

foreign subsidiaries nearly
80% Nearly 80% of executives
expect number of
17% In consumer products
industry, production
tripled, from 265,000 to collaborative relationships introductions increased
790,000 with third parties to increase2 by 17% in 2006, more than
double the 2005 rate4
2X Transnational companies
more than doubled, from
65% Between 2007 and 2010, R&D
outsourcing is forecast to
Portfolio rationalization is
eliminating SKUs almost
38,000 to 79,0001 increase by 65% as fast

80% Engineering services and

product-design projects are
forecast to increase by 80%3

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 2

IBM Global Chief Supply Chain Officer Study Executive Summary
 We wanted to gain insight into the challenges facing supply
chain executives around the world to learn what strategies
and initiatives they are undertaking.

400 Supply Chain Executives 400 Supply Chain Executives World-wide

World-wide 29 Industries
Retail

Electronics

Industrial products

Consumer products / wholesale

Automotive

Food, beverages and tobacco

Chemicals and petroleum

Life sciences / pharmaceuticals

Transportation and logistics

Telecommunications

Aerospace and defense

Government and public services

Utilities (e.g., gas & electric) Num ber of Respondents

0 5 10 15 20 25 30 35 40 45

25 Countries

Key Questions

What is our supply chain strategy? Are we working towards a common goal or are we driven by what weve
done in the past?

Are there opportunities for greater coordination, integration and collaboration between our supply chain
functions and with our global network of partners?

How can we can gain visibility and access to economies of expertise to improve responsiveness and
agility?

Is our supply chain at risk? How are we mitigating our risk or managing it adequately?

Are we exploiting data and technology to its fullest extent?

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 3
IBM Global Chief Supply Chain Officer Study Executive Summary
 Summary and overview

The Top Five Supply The Smarter Building the Supply

Chain Challenges Supply Chain Chain of the Future

Visibility is vital
Visibility is vital

Instrumented Intelligent Risk must be managed systemically

Risk must be managed systemically

Customer
Customer input
input should
should permeate
permeate the
the supply
supply chain
chain

Flexibility will counteract cost volatility

Flexibility will counteract cost volatility
Interconnected
Global supply chains require integration & optimization
Global supply chains require integration & optimization

Five trends define the Instrumented, Interconnected, A new role for the CSCO
CSCO agenda & Intelligent and a map to the future

According to our extensive study of
400 Supply Chain Executives, weve
found imperatives among visibility,
customer demands, cost containment,
risk, and globalization.
The smarter supply chain has three new
characteristics. Firms across the globe
are beginning to see the benefits of
building a new vision of supply chain
excellence.
Building the supply chain of the future
will require the emergence of a new
kind of CSCO and a comprehensive
set of new capabilities.

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 4

IBM Global Chief Supply Chain Officer Study Executive Summary
 The collective insights from 400 Supply Chain Executives
identify five major challenges that comprise the CSCO
agenda

70%

55% 60%
56%
43%

COST SUPPLY RISK INCREASING GLOBALIZATION

CONTAINMENT CHAIN MANAGEMENT CUSTOMER
VISIBILITY DEMANDS Lead times,
Fighting integral Process, data, & delivery, and quality
costs as such as Supply chain technology are Customers have are top challenges,
might be futile, visibility is identified as the increased demand but overall
but being flexible inhibited by a lack roadblocks to good for more precise globalization has
can identify cost of capabilities and risk management, synchronization of been a positive
savings an unwillingness yet they are the key supply and demand. boon for all.
elsewhere to collaborate. enablers.

Based on responses of to a very great extent and to a significant extent

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 5
IBM Global Chief Supply Chain Officer Study Executive Summary
 The Smarter
Supply Chain

We Must be Instrumented Intelligent

Smarter Interconnected

Instrumented, Interconnected,
& Intelligent

The smarter supply chain has three new

characteristics. Firms across the globe
are beginning to see the benefits of
building a new vision of supply chain
excellence.

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 6

IBM Global Chief Supply Chain Officer Study Executive Summary
The Supply Chain of the Future must be SMARTER...It will
be Instrumented, Interconnected & Intelligent

Automated Transactions & Smart Devices

Use of sensors, actuators, RFID, & smart devices to automate
transactions: inventory location, shelf-level replenishment detection,
Instrumented transportation locations & bottlenecks
Supports real-time data collection & transparency from POS to
manufacturing to raw material
Sense-and-respond demand/supply signals allow predict and act

Optimized Flows
ERP to ERP to ERP system integration across the network.
Standardized data and processes.
Interconnected
Collaborative decision making through decision support and
business intelligence starting with the customer
C-Suite risk management programs for integrated financial controls
with operational performance monitored and measured

Networked Planning, Execution & Decision

Analysis
Simulation models to evaluate trade-offs of cost, time, quality,
service and carbon and other criteria
Intelligent
Probability-based risk assessment & predictive analysis
Networked planning/execution with optimized forecasts &
decision support
Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 7
IBM Global Chief Supply Chain Officer Study Executive Summary
 Our Point of View on the Progression of Supply Chain
Management to a Smarter Future

Smart Supply
Chain

Future
External Collaboration & Networked
Integration Planning, Flexibility &
Execution & stability
Decision Analysis
Intelligent Effectively driving
Horizontal Process Optimized profitable growth
Integration Flows

Balancing risk
Functional Interconnected CSCO and
performance
Excellence
Integrated
Static Supply Transactions
Chain (ERP to ERP)
Instrumented Managing
Automated complexity
Transactions
(Sensors & Actuators)

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 8

IBM Global Chief Supply Chain Officer Study Executive Summary
 Building the Supply
Chain of the Future

BUT ARE WE
READY?
A new role for the CSCO
and a map to the future

Building the supply chain of the future

will require the emergence of a new
kind of CSCO and a comprehensive
set of new capabilities.

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 9

IBM Global Chief Supply Chain Officer Study Executive Summary
 The CSCO must take on a new lead role in orchestration of
all supply chain resources and must connect with other
leaders and groups

Address the top

challenges:

Cost Visibility Risk Customer Globalization Optimized Sustainable

Containment Management Intimacy Talent

A critical & crucial role to continually balance, optimize and

A new role that is The CSCO of the Future orchestrate global resources
strategic and
tactical as a Is the ultimate Optimizer of the organization
conductor
coordinating Requires negotiation skills, stakeholder management skills +
resources and supply chain strategy & execution + market knowledge
stakeholders: Includes the functions of the previous CPO & COO, along with
bridging the optimization gap of sales & marketing and finance
aligned with supply, operations, and logistics

New Key Attributes

foundational
competencies
that will drive
success: Instrumented Interconnected Intelligent

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 10

IBM Global Chief Supply Chain Officer Study Executive Summary
 The Smartmap to the Supply Chain of the Future

SCM Competency Areas

Lifecycle Asset Enterprise
Strategy Planning Sourcing Operations Mgt Logistics Apps
Mgt

Integrated real-time transactions (ERP) with business intelligence

Multi-partner collaboration platform
Predictive sense-and-respond event detection & resolution

Supply chain risk analysis & mitigation models

Probability-based risk mgt

Risk-adjusted inv. optimization

Customer-segmented product lifecycle management

Real-time consumption & replenishment programs

Variable cost structures that fluctuate with market demand

Optimized inventory Asset Mgt / execution
Dynamic supply & demand balancing

Outsourcing non-differentiating functions

Environmental strategies w/ sustainability models for usage impact analysis
Global centers of excellence to optimize capability and delivery

Each company must plot their unique journey to smarter supply chain capabilities
Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 11
IBM Global Chief Supply Chain Officer Study Executive Summary
The Smarter Supply Chain of the Future

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 12

IBM Global Chief Supply Chain Officer Study Executive Summary
 The Smarter Supply Chain of
the Future

IBM Global Chief Supply Chain Officer Study

www.ibm.com/supplychainstudy

www.w3.ibm.com/ibm/resource/gbs_supplychainstudy.html

Karen Butner
Institute for Business Value
kbutner@us.ibm.com
972-948-1556

Sanjeev Nagrath
Global and Americas Leader, Supply Chain Management
IBM Global Business Services
Sanjeev.nagrath@us.ibm.com
(C) 2008 asbl Atomium / Artists Rights Society (ARS), New York / SABAM, Brussels
917-472-3263 Photo Number: WC6D8959

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez 13

IBM Global Chief Supply Chain Officer Study Executive Summary
 Sistemas de Informacin
para Manufactura

THE SMARTER SUPPLY CHAIN OF THE FUTURE

Fuente: IBM Global Chief Supply Chain Officer Study

Profesor: Ing. Mg. Jorge Arturo Castillo Snchez