A big boost for supply chain strategies
IBM and its partners host a major conference on supply-chain strategies and the growing power of the Internet.
By Staff -- Modern Materials Handling, 3/1/1999
Orlando-"The power of change- transitioning to the 21st century" was the theme of IBM's global supply chain executive conference held here in January. Guest speakers included management author Tom Peters, former German chancellor Helmut Schmidt, and Sergio Zyman, former chief marketing officer of The Coca-Cola Company.The four-day event focused primarily on growing businesses in the industrial and distribution industries. It brought together some 2000 companies, including end-user manufacturing companies, suppliers, and IBM business partners from around the world to share new ideas and learn about innovative solutions that will help them better compete in the 21st century. IBM also announced several supply-chain initiatives at the event.
"Supply chain management has become one of today's most important business objectives for growing companies," said Peter Rowley, IBM general manager, global small and medium business. "Successful enterprises want to effectively coordinate the resources of their company with those of their trading partners to streamline operations, increase revenue, and enhance customer service. Our conference and the initiatives we announced reflect IBM's commitment to help companies realize these goals."
Rowley noted that small to medium businesses represent organizations of from a few employees to up to 1000. Many of these companies do not have the luxury of a staff dedicated to technology, and to keep systems up and running. Yet these companies need technology that is affordable, easy to use, easy to maintain, and fully supported.
New consulting arm
To this end, IBM has created a new supply chain consulting services practice to help companies reduce inventory, improve delivery performance, and enhance production capabilities. The practice currently totals 80 consultants and is expected to double in the coming year.
IBM has also developed a supply chain management consulting methodology. The latter enables company experts to better help customers identify effective supply chain solutions. The methodology is supported by a supply chain "transformation toolkit" that provides IBM consultants with software tools, analytic techniques, and templates for quick implementation.
IBM is basically a supplier of hardware- computers. Its strategy is to partner with key software suppliers in order to provide overall supply-chain solutions.
Making profits in E-business?
An important focus in this conference was conducting supply-chain business electronically on the Internet (E-business). A case history success story was provided by Mark Layton, CEO of Daisytek International, a wholesale distributor of industrial office products based in Plano, TX. Strategic use of E-business, coupled with a partnership between Federal Express and the company's distribution center in Memphis, has created a "win-win" scenario for all members within his company's supply chain. One of the benefits he cited was reduction of "redundant inventories" at various levels in the chain, including those of the manufacturer, the distributor, and the retail outlets.
Layton predicted a radical change in buying practices in 5 to 6 years. He said it took 5 years to reach 50 million web users. By 2001, he suggests, 80% of the world's population may be on the web.
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