Most mergers and acquisitions fail to live up to expectations. All too often companies focus on quick-fix cost-cutting opportunities and ignore the long-term, strategic supply chain implications. Following these steps will help you avoid that trap.
We know about visibility within the supply chain. The lack of visibility can lead to errors, missed deadlines, and other misshapes that lead to financial loss. But how far that visibility should go is still a topic for discussion. Should the supply chain be continuous from the worksheet that your buyers use to calculate quantities and discounts all the way through to your company's Facebook page? And what information should be available at each point?
We talk a lot about integration. That is, integration of your supply chain components with your enterprise operations and ERP. I don't believe that anyone thinks this is something that can simply happen because it's the best thing to do. The complexity of each of the processes and components that have already been put in place, and the amount of effort each required just to get them to the point of functionality can bring tears to the eyes of those who struggled through them - or at least cause a twitch of pain. The point is that the first steps were not simple ones.
This question, asked of Google, got 402,000,000 results. First item on page 1 of I don't know how many pages was “How to Fix a Zipper”. THERE'S OUR ANSWER! KEEP IT SIMPLE. Let's call it the “Zipper Law”.
In designing Supply Chain Control Towers, we have been heavily concerned with visibility into outsourced and/or offshore finished products suppliers. But the Manufacturing function itself depends on it's own critical parts suppliers. We have to realize that success is more than just assuming Manufacturing's ERP/MRP will handle everything for us. Let's take a look at the automotive industry and what it takes to create an integrated manufacturing process.