A study conducted by the supply chain management software for companies to use the supply chain management software in the place shows that the use of the supply chain management software system is optimal, but if you want to use it to obscure business processes The flaws, there is no effect. Kishore Kanakamedala, Glenn Ramsdell, Vats Srivatsan translated from Getting Supply Chain Software Right McKinsey High-level Management Series The circulation of various business units and suppliers and suppliers of business units. Since 1999-2002, software vendors sell a supply chain management software worth more than $ 15 billion, and this number is only the first step in the entire process, and has not included expensive installation costs, as well as future maintenance costs. Supply chain software systems and developers, such as SAP and Oracle, SAP and Oracle, and Ariba, I2 Technologies and Manugistics, etc., are very eye-catching, because these software can track and predict customer needs, so that The company adjusts logistics more accurately. When the supply chain management software system actually works, it helps to reduce the inventory level, improve delivery efficiency and ensure that it will not take shortcomings, which can improve customer satisfaction. One supply chain supervisor even metaphor for its business to maintain "oxygen". However, these software actually use the results in fact, good and bad. Some companies (including Dell and Wal-Mart) fully utilize the power of this technology to improve the supply chain, and even changed business models in some respects. Other companies have encountered difficulties, and some even openly admit that they have invested hundreds of millions of dollars, but they have been in vain. Good supply chain management is basically inappropriately, the supply chain includes the company's product stream, information about the product, and the company and its suppliers and customers' handful currency streams. If the company will support the above-mentioned product stream, the information flow and the currency stream can be properly fulfilled, the customer's order can be quickly fulfilled while controlling inventory at the lowest level. Conversely, if the company's process management is poor, the supply chain will show off. For example, the customer has underde, but it is notified to be out of stock, and in fact, the company may still have inventories elsewhere. For example, the raw materials have failed to appear in time in the unloading terminal, delays in the ship's shipments. The factory cannot reach maximum capacity because the customer cancels the order. All the results may result in a sharp decline in sales, low profits, and even inventory shifts. The software system itself is not enough to correct the basic defects in the supply chain management. In fact, they may also have a snow to add. It is truly brought interest to the company to repair the business process with flaws. Companies that have been resolved in these issues before software installation, which will be more sure to reduce inventory levels and forecast market demand. Plus software systems help, improve speed is expected, and the effect is more lasting. However, in the actual situation, many companies that have installed the supply chain management tool are not satisfactory, so we focus on improving the problem of implementing poor installation. Only makes software systems with improved job processes to create a more efficient supply chain, and companies can get better return on investment. As a result, the big phase was found to find the success of the supply chain management software system. We studied the records of 63 high-tech companies in the top 1,000 enterprises in the "Wealth" magazine from 1995 to 2001 records, which in 6 years of investment boom A wave. Our samples include companies that produce hardware, network equipment, semiconductors and electronic equipment, but do not include software companies. We choose these types of companies because they use the pioneer of this application software system. But we believe that the results of the research are equally applicable to companies in non-high-tech industries. We also selected some companies from other industries as an example.
We use inventory Turns as measurement standards. This indicator directly affects the return on investment capital, flow funds, sales costs (inventory expiration and inventory costs may affect sales costs), so it is extremely reliable and sufficient to judge the supply Whether the chain is perfect. The supply chain supervisor always faces the pressure on the inventory turnover rate. As mentioned by a supervisor: "The inventory level determines my success or failure. The product portfolio has been constitutive. My job is trying to improve the turnover rate." We found, invest in the supply chain The company's inventory turnover is higher than those who have not investive. Among the company where the supply chain management software system is installed, the radio rate ranked by one-third of the company is 100% higher than the ranking of one-third of the company's turnover rate. More surprisingly, companies that have not been investive in the software system are better than those of the last one-third of the company, some of which have even increase the turnover rate (chart). An electronic product manufacturer encounters a serious inventory problem, some products are too much in stock, and some are insufficient. This company has a foresight, in order to make its planned supply chain management software system fully utilize the utility, it first starts from the redesign manufacturing process. The company develops a fixed product, formulating fixed production, and stably supplements inventory; the production of other products is determined by the management personnel of the forecast demand; there are some products, the fact that it cannot predict the demand In order to use the manner production. These three production systems have begun to operate before the company has not spent the text of the new software. In fact, the company's supply chain management can only achieve maximum improvement in the case of improving the process and properly installing and using supply chain software. Let supply chain management software functions as mentioned earlier, the supply chain management software installation success depends on whether the supply chain has been perfect, or whether it has been improved at least in software installation. In addition, the company must have sufficient demand and preparation for software installation. If management, IT departments, and users don't realize that the urgency of improving the urgency of the supply chain, the supply chain management software is impossible to make full play. When the product's profits are lowered, the market demand has declined, and the customer demanded that the sales of the business is managing stock, or when the new product has been admitted, it will highlight the urgency of improving supply chain management. Taking the personal computer assembly industry as an example, in the 1990s, the annual growth rate of this industry reached 10%, but the profit margin decreased due to price war and growing commercialization. The dynamic changes of the market have forced these companies to pursue higher operating efficiency. The challenge facing other companies is to re-create this urgency, because only this can make everyone realize the necessity of changes. In our research object, those not only have supply chain software, but also pay attention to market demand, predict information collection and application, and set inventory levels, and pay attention to the promise of payment, paying attention to key companies, focusing on two companies The inventory turnover rate is increased by 100% to 150%. If these analysis before installing the software, the defects in the process will be amplified, because if there is an inaccurate information in the information flow, the result of informationization will only spread these error messages faster. Fortunately, companies that do not have pre-analyzed companies are often tailored to them. Therefore, if the company is intended to improve software installation, the parameters of them can be adjusted carefully when installing certain specific processes. However, the performance performance of software depends not only on the characteristics and quality of its products, but also depends on the user's way of use. Therefore, we have identified the company's pathogenesis and put forward the corresponding countermeasures. We have drawn four guiding principles: only repair those most important fracture processes; seeking truth from facts; strengthening training and requires all participants to take responsibility. Timely correction of these companies that can improve the performance of software, and improve the company's return on investment.
