Criteria for the characteristics of this stage are still evolving. However, they include alliances, collaboration and interactive information sharing.
Business Environment: Stage IV fully implements the supply chain management paradigm. The ISC provides collaboration capabilities where sophisticated sensitivity analysis models determine the effects of changes in products, supply sources, delivery options and manufacturing alternatives. Customer requirements and demand drive the supply chain. Key business environment indicators for this stage are
- matrix of teams
- integrated supply chain
- integrated and segmented core competencies
• business processes:
- problem solving and innovation
- processes support integrated supply chain management
- best supply chain practices
- "pull demand" drives ISC
- customers and suppliers participate in collaboration processes
• effectiveness measure:
- measures across integrated supply chain
- mutual goal-setting
- measures relating to effectiveness of delivering products from
conception to retirement.
Customer and Supplier Relations: At Stage IV, the enterprise succeeds in breaking all the barriers of the traditional model. Suppliers and customers work in total harmony. A single enterprise cannot bring on this breakthrough alone. Instead, it requires an industry wide alliance of supply chain management participants. Criteria include
• value chain extends out to final consumer
• ISC becomes extremely sophisticated
• full conversion from push to pull demand management
• "going to market" as a supply chain.
• supply chain extends back to raw material provider
• supply chain heavily influenced by customer requirements
• working with suppliers, as a single entity, on R&D
• collaboration on marketing strategy.
Supply Chain Communications: Communications are instantaneous and extend to the lowest practical levels of the supply chain. For example, when a customer places an order, alert notifications, aggregated at some kanban level, are transmitted to all ISC members. Major supply chain communications criteria are
• Internet introduced for customer communications
• supplier EDI fully implemented
• instantaneous communications to all ISC members.
Information Systems: Sophisticated information systems are in place that extend ERP to include collaborative planning software. Extensive use of the Internet for electronic commerce. Costs to the ISC are evaluated and shared proportionately by all members. Criteria include
• full ISC technology implemented
• knowledge-based systems
• collaborative software supporting instantaneous transfer of infor
mation across ISC.
To Be Continued
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