Extended-Enterprise Supply-Chain Management at IBM Personal Systems Group and Other Divisions

Abstract

In 1994, IBM began to reengineer its global supply chain. It wanted to achieve quick responsiveness to customers with minimal inventory. To support this effort, we developed an extended-enterprise supply-chain analysis tool, the Asset Management Tool (AMT). AMT integrates graphical process modeling, analytical performance optimization, simulation, activity-based costing, and enterprise database connectivity into a system that allows quantitative analysis of extended supply chains. IBM has used AMT to study such issues as inventory budgets, turnover objectives, customer-service targets, and new-product introductions. We have implemented it at a number of IBM business units and their channel partners. AMT benefits include over $750 million in material costs and price-protection expenses saved in 1998.

A guide for supply chain integration in SMEs

“…Nevertheless, these architectures were designed with the general internal integration of the enterprise in On the other hand, there are the methodologies that are specifically related to SCM, such as the Supply-Chain Operations Reference model (SCOR) (Supply Chain Council 2008); Collaborative Planning, Forecasting and Replenishment (CPFR) (Ireland and Crum 2005); or other methodologies that, despite not being created for this field of application, could also be useful, such as the Analytic Hierarchy Process (AHP) (Bhagwat and Sharma 2007a), Analytic Hierarchy Process-Pre-emptive Goal Programming (AHP-PGP) (Bhagwat and Sharma 2009) or Asset Management Tool (AMT) (Lin 2000). However, from the point of view of their applicability to SCI in SMEs, these methodologies present important shortcomings involving the actual parameters used to define the methodology; the high level of requirements as far as human, time or economic resources are concerned; the lack of vision for integrating the chain; or drawbacks due to problems in defining the Key Performance Indicators (KPIs) (Simatupang and Sridharan 2005).…”

The Impact of Internet Referral Services on a Supply Chain

“…Early work on net-enabled organizations and the concept of the extended enterprise focused on the role of information sharing in facilitating cooperation and collaboration in the supply chain among suppliers, manufacturers, and retailers (Choudhury et al 1999, andLin et al 2000). The entry of online infomediaries has changed the shape of the extended enterprise by, in addition, bringing in an element of competition into the supply chain.…”

Mutually Coordinated Visualization of Product and Supply Chain Metadata for Sustainable Design

“…Demand is shown by node sizing superimposed onto a map with distribution locations allowing the user to internalize multiple data entities at once [20]. Lin et al described IBM's efforts in representing traditional inventory management information in dynamic interfaces [21]. Others have used similar ideas to improve the environmental sustainability of supply chains, e.g.…”