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Creating Value Through Supply Chain Management
by Rick Ludolph
The rules for prospering in the sewn-products industry are changing faster than most companies can react to them. The focus of individual companies on their core competencies has lead to more outsourcing. Consequently, there has been a growing need to find ways to manage the "extended enterprise" to build collaborative relationships and improve the flow of both materials and information throughout the supply chain.
One thing these changes make clear is that individual manufacturers, suppliers, or retailers alone will not dominate the market of the future. The winners will be networked enterprises with the knowledge and capability to integrate, optimize, and collaborate across their entire supply chain faster, better, and more profitably than other supply chains. In the sewn products industry, the basis of competition is no longer limited to companies and their products, but rather their performance as an integrated supply chain.
Supply-chain thinking has traditionally been efficiency oriented a cost reduction sort of thing whereas value-chain thinking is enterprise-effectiveness oriented. When companies stress effectiveness, they arent necessarily trying to reduce costs, but rather "to create the highest value for the customer." Todays challenge is to configure a supply chain that is robust enough to bear volume without breaking down, and agile enough to respond to rapidly changing demands.
Companies with best-in-class supply chain management practices achieve 10-30% higher on-time delivery performance than average performers, while spending 30-50% less in total supply chain management costs. The savings potential is substantial; it can range from 3% to 7% of revenue, not to mention the competitive advantage gained!
This, the 25th International ARC Conference will focus on the opportunities and challenges of creating value through supply chain management. A key goal of this conference is to help you put the sewn-products supply chain into perspective and provide proven implementation strategies that you can put into action in your enterprise. We have assembled a diverse group of presenters who will share their supply chain views and experiences with you. Were certain that you will find yourself being informed and challenged to take action to improve your own supply chain.
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