Supply Chain
From Tactical
Implementation
to Strategic
Integration
Transformation:
Designed to make things more connected and facilitate business efficiencies, the Internet of Things (IoT) now touches almost every market in every corner of the world,
connecting people to businesses in ways
unimaginable just a few years ago.
An interesting by-product of its growth is the
expectation put on businesses to provide outstanding,
personalized service to each individual customer, yet do
it on a global scale. This has presented unique
challenges for brick-and-mortar organizations and
virtual-based businesses alike. It seems as if a company
needs to be “always on,” and ready to respond to the
next customer request as personally as it did the last
fifty times. This burden weighs heaviest on supply chain
management (SCM).
Research suggests the link between customer
satisfaction and business success is growing stronger by
the day. A recent report from Gartner indicated that “89
percent of marketers compete primarily on the basis of
customer experience — discrete moments that,
together, strengthen or weaken a customer’s
preference, loyalty and advocacy.” (Gartner, 2016).
For companies without a centralized means to access,
and act on, supply chain data, this statistic can seem
overwhelming.
So, how do you capitalize on this movement and not
fall victim to process shortfalls or disgruntled customers?
Although data is critical to implementing a modern,
demand-driven supply chain, the key is not just in
managing the data; that’s merely a step in the process.
True value, and true business benefit, comes when a
company optimizes its data and its relationships across
the entire supply chain.
Make information actionable for improved
efficiencies, transparent for enhanced serviceability,
and streamlined for better profitability. Although some
may balk at this seemingly daunting task, it’s important
to recognize that neither the data train nor customer
expectations are slowing down.The way to meet these
challenges is to unify business intelligence across the
entire supply chain.
Supply Chain
Transformation:
From Tactical Implementation
to Strategic Integration
AN INTEGRATED SUPPLY CHAIN
ENABLES YOU TO:
1. Scale With Ease: Gain the agility, flexibility, and
scalability your business needs to power innovation
and growth.
2. Gain a More Complete Picture of Your Business:
Built-in business intelligence provides real-time
insights into key business performance indicators
for a unified view of the organization.
3. Future-Proof Your Organization: Today’s
software platforms enable improved agility and easy
integration that carries your business forward.
What does your current
supply chain look like?
When looking at your current organizational structure,
can you identify what needs to change, and how that
change can be applied across your entire process? Are
there elements designed into the process itself that are
limiting your supply chain from moving towards better
profitability?
Some key factors are influencing a transformation in
business intelligence, where all people and parts are
moving forward together in a collaborative environment.
Global environments: The question is no longer should
you be global, but how global do you need to be. Different
financial concerns, such as real-time currency conversion,
regional regulations to ensure legal compliance and even
export guidelines, can further hinder globalization. If not
managed properly, having a presence in multiple countries
can actually hurt a company, yet globalization is happening
to businesses of every size, and in every market.
Customer transparency: Customers expect seamless
execution from order to delivery, wanting to be informed
every step of the way. Companies need to manage
those expectations and keep customers in the know.
Today’s logistics managers are looking for ways to
improve supply chain operations through better
integration and easier access to system data and provide
actionable information on a global scale.
Scalability: In today’s fluctuating supply and demand
environment, being able to reduce waste and expedite
order delivery means manufacturers need to respond
dynamically to production requests using available data
metrics, and apply solutions across the enterprise, even if
that entails multiple time zones and inventory spread
across three countries. It’s critical that businesses mobilize
internal resources to make the overall supply chain
process move smoothly, and have a means to manage
information from every region of the world.
Can a good strategy
withstand a bad system?
Without a cohesive supply chain, managing both
upstream or downstream disruptions is difficult for any
business. The modernization of the supply chain,
especially through the use of comprehensive cloud-based
systems, is quickly broadening beyond the scope of
manufacturer-generated data to include vendor insights
as well as customer feedback.
Forbes has noted that “forward-thinking manufacturers
are orchestrating 80% or more of their supplier network
activity outside their four walls, using big data and cloud-
based technologies to get beyond constraints of legacy ERP
and SCM systems. (Forbes, 2015)
Supply Chain Transformation: From Tactical Implementation to Strategic Integration
SMALL BUSINESS
An agile, cost-
effective SCM
solution will
scale rapidly and
future-proof your
company for long-
term innovation and
growth.
MIDSIZE BUSINESS
Accelerate entry
into new markets,
quickly add new
product lines and
easily engage
with your
customers.
ENTERPRISE
Enable your team
to stay flexible and
responsive across
every industry, every
business type (B2B,
B2C or B2X) in every
part of the world.
SMALL, MIDSIZE, AND ENTERPRISE
Many ERP system are adequate to handle internally-
focused functions, but on a global scale, true supply chain
management needs to happen at a higher level and in real
time. Next-generation SCM platforms are optimizing
global efficiencies through increased visibility that improves
business intelligence. Real-time insights into company
performance across all business functions are providing
more intuitive decision-making from the executive level to
the front lines of production.
Shared information means less problems down the line
and increased customer satisfaction, since manufacturers
gain a clearer picture of the true landscape and can have
a plan in place if an issue starts to arise. But there are
some major obstacles to being able to share information
on a global scale, so ask yourself:
• Does our culture foster an environment where others
are given the ability to collaborate?
• Does our process have the means to share
information cross-platform and with other parties?
• Does our global footprint hinder our ability to
respond quickly and efficiently?
Even with the right mentality, making the shift is hard
if you don’t have the supporting infrastructure in place.
Common bottlenecks
in current methodologies
Many legacy systems in place today weren’t developed
with the foresight of globalization, which brings into play
different levels of complexity in terms of language barriers,
industry and country regulations, tax implications, and
other business processes.
Logistics Bureau, a leading Australia-based consulting
company specializing in the field of supply chain and
logistics has recognized that, “in many businesses, the
supply chain has never been subjected to a design process,
but has instead just…evolved.” (Logistic Bureau, 2016)
As these systems developed, capabilities were layered
on, but never truly integrated. Translate the invoice from
English to Spanish. Apply a VAT if the order originates
from the U.S., but ships to Germany. There was no
thought put towards making the information work
together; each system performs its duty and keeps the
supply chain chugging along.
This is not efficiency, it is merely function.
Mobilize information to
benefit your business
Scalability, both up and down, needs to be sewn into
the fabric of supply chain management to position a
company for properly managed production cycles.
Fluctuating supply and demand no long needs to be
feared, but can instead be predicted and responded to
in a way that allows a business to utilize the right
resources at the right time.
Each touch point, from sourcing to order delivery,
offers an opportunity to gather insights on how to
improve business operations. Better efficiency starts
with better communication, which leads to more trust
for everyone involved.
By collaborating with vendors and suppliers, a
manufacturer gains deep insights into what elements of
their supply chain needs help and what areas are
contributing to an improved process. Access to partner
data allows for proper planning, and response to, the
many types of orders placed that encompass different
quantities, specifications and destinations.
Centralized, cloud-based systems are collecting this
growing amount of data to build a strong supply chain,
so businesses can not only react better to hiccups in
production, but develop proactive strategies that minimize
disruption when it happens. This methodology gives
companies real-time information that can be applied
locally, regionally or at the corporate level, making for a
very flexible, responsive business model.
Don’t confuse comprehensive
for complex
Cloud-based SCM systems have increased the number of
tools available to manage system processes, with much
of the complex data analysis and financial processing
happening on the back end of the system. A well-
designed SCM will offer easy, seamless management of
transactions across the enterprise.
In the case of NetSuite’s OneWorld, all dashboards and
order entry modules follow the same visual structure and
entry process, reducing employees’ training, ramp up time,
and need for technical support. Once you know one type
of entry method, the others follow the same pattern.
The holy grail of the supply chain is the single sales
order in a system, and modern SCM platforms are moving
companies closer to that goal. With a unified approach,
where personnel, inventories, and data is mobilized to best
meet the needs of the customer, it’s feasible that one order
could be processed across multiple locations. For example,
you have a customer that orders 100 widgets in a single
transaction. Twenty may be delivered locally and 50 could
be shipped to another location from a supplier closer to
the destination, while another 30 might drop-ship direct
from the manufacturer, all of which is invisible to client.
Businesses are no longer forced to make the tradeoffs
traditionally associated with SCM systems, such as
customer service versus cost, inventory management
versus sourcing, delivery versus quality, etc. The decision-
making process becomes forward-looking, where
companies are able to use existing assets and optimize
inventory as it makes sense for their business model.
In addition, financial improvement increases overall
business value through better inventory and data
management. Research from Deloitte explains that
Supply Chain Transformation: From Tactical Implementation to Strategic Integration
“without effective visibility into their supply chains,
executives potentially have a significant blind spot in their
enterprise risk management structure, from which
substantial legal, financial, and reputational exposure
could emerge.” (Deloitte, 2014)
Today’s SCM platforms are able to unify multiple
facilities at different points along the chain to enable
creative resource management. The need for businesses
to optimize efficiencies is not a passing fad. By identifying
the shifts happening today, and putting the right
infrastructure in place, you can set a supply chain strategy
that positions you for operational excellence and
significant business growth.
Ed McMahon, CEO of EPEC Engineered Technologies, has
seen firsthand how implementing a comprehensive SCM
system can benefit business. “[It has done] everything from
taking steps out of our entire process to helping us develop
an e-commerce platform to helping us have a product
lifecycle management system that we never had in place…
It’s really changed how we go to market. That’s really
changed how our customers look at us and what a lot of
our competitors have had to do to keep up with us.”
Solidifying supply chain’s
seat at the table
Traditionally, executives have not paid much attention to the
supply chain, even though it impacts a significant percentage
of revenue. No longer
an afterthought, the supply chain is now being recognized
as a significant contributor to a company’s bottom line.
As Deloitte research also points out, “it has never been
more true that companies cannot compete without strong
operations…A supply chain leadership position is now
As the company that invented
cloud-based computing, NetSuite is
well-versed in helping businesses
optimize efficiencies by mobilizing all
available resources into a centralized,
fully available platform. When it was
time to expand its flagship software
suite to enable global optimization
across an enterprise, the company
didn’t want to assume it could
anticipate all the intricacies of doing
business globally throughout several
different markets.
So, it turned to the people
who use their software day in, day
out — its customers. By listening to
the people that perform specific job
functions and work in various areas
of supply chain management, NetSuite gained a unique
perspective on building a solution based on how people
actually work.
Allowing its customers to help drive the design process,
the company was able to recognize challenges faced as a
business scales upward. The first step was to identify not
just the areas that could benefit from a new design
methodology, but how the people that interacted with the
system needed it to work.
“We identified nine core areas for development, based
on surveys, feedback, and evaluations that took place at
selected customer locations,”
explains Gavin Davison, product
marketing manager for ERP at
NetSuite, who was on the ground
floor of these efforts. “From there,
we mapped out supply changes,
documented the largest problem
areas and came up with a list of
features to develop that would
solve the issues. The biggest
benefit was having the
conversations with our customers
about how they actually used their
ERP system and what frustrations
they were facing.”
This process created a
normalized view of what
customers thought a supply chain
should look like, and was the catalyst for the development
of the supply chain operational efficiency (SCOPE)
initiative. It also led to the development of the specific
design features, as well as the creation of the SC Control
Tower. Similar to air traffic control, it shows all relevant
data across the supply chain and shows what is
happening from a single screen.
Davidson continued, “We’re fortunate that, as a part of
Oracle, our growth and agility mindset is fully supported.
Bringing a globalized SCM platform to our customers has
quickly become a reality.”
The supply chain is the life
blood of the operations for
virtually all distributors and
manufacturers, particularly
for global business. A poorly
run supply chain means
missed customer order
shipments, excess inventory
in the wrong places, and
increase costs—resulting in
disgruntled customers.
(Technology Evaluation Center’s
TEC Spotlight Report, NetSuite,
November 2017)
Supply Chain Transformation: From Tactical Implementation to Strategic Integration
DRIVING DESIGN METHODOLOGY
THROUGH COLLABORATION
seen as a strategic role, whereas a decade ago it would
have been considered a tactical one. (Deloitte, 2014)
Implementing a modern SCM solution comes with
some challenges, the same as any fundamental change
made to an established infrastructure. But common
concerns are often easily laid to rest.
A. The need for technical knowledge in
traditionally “non-technical” roles. With an easy-to-
use, integrated interface, many SCM platforms reduce
technical complexity and make using the system’s
advanced functionality feasible.
B. Limited time and resources to provide a
value-driven strategy. Streamlined, real-time analysis
takes the burden off personnel to manage system data,
enabling them to focus on forward-looking, big picture
insights that will fuel overall efficiencies.
C. Concerns over data security. In a typical business
structure, there’s one IT person responsible for ensuring
the security of data passing along the entire enterprise, of
which SCM is only a part. By implementing cloud-based
systems, backed by a solid team devoted to monitoring
data security for this slice of the business alone, you have
increased your data security measures tenfold.
D. Keeping pace with a faster supply chain. There’s
no doubt that the supply chain is having more demands
placed on it from all aspects of business. To stay aligned
with the speed at which business is moving, SCM
platforms are incorporating advanced features that focus
on function, not the process. This makes for tools that
employees can use effectively.
E. Regional compliance within a global
organization. With real-time visibility and multi-currency
flexibility built into the SCM platform, businesses can be
assured of regulatory, legal, and financial compliance.
Leverage available data for
optimized business efficiency
Many of the roadblocks to an effective, forward-looking
supply chain are being eliminated using intuitive data
analysis, comprehensive financial management and
optimized inventory usage provided by cloud-based SCM
systems. Widespread resources are no longer part of the
problem, but can aid in reducing business inefficiencies.
Regionalized, real-time data availability enables more
dynamic response and better operational costs as well.
Organizations today demand a global system that is
flexible enough to accommodate dynamically changing
business needs. The right SCM system for your business
will help you manage IT costs and optimize accounting
efficiencies, while streamlining order management and
the procurement processes. Your customers will benefit
from expedited deliveries, personalized service, and
peace-of-mind that will keep them coming back for
years to come. n
Supply Chain Transformation: From Tactical Implementation to Strategic Integration
Ed McMahon,
CEO of EPEC
Engineered
Technologies
About this Report This report was prepared by Advantage Business Media, a data-driven marketing
solutions company serving industry professionals in the manufacturing, science, and design engineering
markets. For more information, visit advantagemedia.com.
About Netsuite NetSuite, an independent global business unit of Oracle, empowers tens of thousands
of fast-growing companies with software to transform and accelerate their businesses. Using NetSuite,
companies can run their businesses on a single, unified platform, reducing IT costs and gaining comprehensive,
real-time visibility across their organizations. NetSuite provides customer-facing sales force automation and B2B
ecommerce, as well as marketing and customer service capabilities that link seamlessly with back-office inventory
management, fulfillment, and accounting. For more information, visit www.netsuite.com.
Supply Chain Transformation: From Tactical Implementation to Strategic Integration
Designed to make things more connected and facilitate business efficiencies, the Internet of Things (IoT) now touches almost every market in every corner of the world. So, how do you capitalize on this movement and not fall victim to process shortfalls or disgruntled customers? Download to learn more.