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? 1999 Andersen Consulting The SCM pitfalls we have learned to date. Benefits from sharing sales forecasts and inventory levels are achievable but fall short of the promise The barriers to collaboration and integration are organizational and behavioral not technological or economic - the Fear of Change Lack of trust and integration of company practices are key obstacles Executives should take a holistic business approach to successfully synchronize their supply chains. First and foremost, successful synchronization requires developing a synchronization strategy. Companies will then need to develop processes to support each core capability. Implementing the right enabling technologies is also critical to the success of synchronization. The Journey to Synchronization Supply chain organizations must be restructured and re-skilled to support these strategies * * Business Integration Model Linking the globe with real-time applications that maximize customer desires with reduced cost structures through optimized software with operations executed by both internal people and external alliance partners. Gregory J. Owens Former Global Managing Partner Supply Chain Practice March 4, 1999 A Holistic Perspective:Supply Chain Management “The SCM Practice comprises experts in technology, processes, strategy and change management, enabling it to provide clients with cross-functional solutions.” AMR Research Alert on Supply Chain Management (August 1998) Successful SCM initiatives typically combine strategic and tactical change to all components of a company. TECHNOLOGY BUSINESSINTEGRATION PEOPLE PROCESS / OPERATIONS STRATEGY S u p p l y C h a i n M a n a g e m e n t P r a c t i c e TECHNOLOGY Synchronized Supply Chain PEOPLE PROCESS / OPERATIONS STRATEGY Implement the right enabling technologies Develop a synchronization strategy, and choose the right initiative Develop supporting process capabilities Restructure and re-skill organizational