Read how adoption of industry best practices can fuel excellence in the supply chain operations of consumer and high-tech OEMs. SAP benchmarking studies measure the performance gap enjoyed by the industry leaders and reveal their secrets.
GETTING VALUE FROM INDUSTRY BEST PRACTICES
THE HIGH-TECH SUPPLY CHAIN CHALLENGE
SAP Executive InsightSupply chain operations play a vital role in the success of any consumer or high-tech OEM. But some companies consistently outperform the field with respect to supply chain effectiveness and efficiency. These market leaders seem to have greater insight into demand signals and mar-ket forecasts. Their supply chain is responsive to changing customer expectations. And these companies are better able to align inventory and supply plans with their custom-er service goals.
How do these leading companies achieve and maintain this competitive advantage? Benchmarking studies can help provide the answer. Studies examining supply chain operations reveal a strong correlation between supply chain performance and the adoption of industry bestpractices. But questions remain. What are those best practices? How can your company benefit from thelessons learned by industry leaders?
This SAP Executive Insight examines how the adoption of industry best practices can add value to your organization by answering the following questions:
. W ill the deployment of best practices raise yourcompany's performance and profitability?
. W hich best practices improve customer service andreduce supply chain costs?
. H ow quickly can a best-practices supply chain road map be developed that incorporates a projection of the benefits?
2 SAP Executive Insight - Getting Value from Industry Best PracticesEXECUTIVE AGENDA
AT A GLANCE
Challenges in the High-Tech Getting Value from Industry Best Benchmarking and Best PracticesSupply Chain Practices Evaluating the true value of your busi-There is little doubt about it. Business Yet in spite of these challenges, certain ness processes and technology invest-realities such as outsourcing, globaliza- companies continue to set the bar in ments can be a challenging task. But tion, and accelerating product life supply chain performance. It stands to understanding how these investments cycles are increasing the complexity of reason that using the best practices impact bottom-line profitability can supply chain operations. As a result, employed by these market leaders can bring huge benefits to companies run-OEMs in consumer electronics, net- have a significant impact on the effi- ning sophisticated IT solutions. Bench-work equipment, and other high-tech ciency and profitability of your company marking can help reveal the association market segments are often finding it as well. But where do you start? between operational excellence and difficult to respond quickly to new . Evaluate the "performance gap." best practices. The America's SAP opportunities. In particular, supply chain Benchmarking studies reveal a signif- Users' Group (ASUG) and SAP have complexity is eroding performance in icant performance gap between the collaborated on a number of bench-three areas: market-leading OEMs and the rest of marking initiatives and best-practice . Customer service. Inaccurate fore- the pack. These studies illustrate the surveys to identify current and emerg-casting is commonplace among high- critical key performance indicators ing best practices. The findings of tech OEMs, and a flexible supply (KPIs) and value drivers of these top- these programs allow you to compare chain is necessary in order to performing companies. your organization's KPIs with best-in-respond quickly to new customer . Identify best practices relevant to class KPIs.demands. Otherwise, customer your company. You can examine the orders are lost and order upsides can best practices used by industry lead-result. Customer returns are also ers and identify those practices that generally a problem where supply will support your own organization's chain and service issues persist. business goals.. Supply chain responsiveness. Mar- . Establish a best-practice road map. ket demands change quickly, and a An integrated approach to adopting company's ability to respond can be best practices is critical to realizing hampered by a number of factors - your performance objectives. It is for example, a lack of global visibility important to align business process-into an extended supply ecosystem, es and technology enablers with your or manual or overly complex process- company's supply chain strategy and es. This can result in excessive lead IT road map.times that p... [download for more]
