This is my presentation from CSCMP Europe 2007 conference. Discover how leading practices are being used to transform supply chain performance by attending this session on the Global Value Chain Study. This study, undertaken by IBM Global Business Services in conjunction with APQC, identifies current practices, captures significant trends and establishes operational performance benchmarks in several key areas of Supply Chain Management: New Product Development, Planning, Procurement, and Logistics. By analyzing responses from companies across a range of industries, in multiple geographies worldwide, it provides unique insight into challenges and demonstrates how supply chain management is changing from a static and cost-centric function to an evolving, integrated business model.

1. Scoring High on the Supply Chain Maturity Model Heino Huettner May 10, 2007

5. Companies have traditionally focused their supply chain initiatives on increasing internal operations excellence Cost-cutting focused on optimizing internal processes Achieving functional optimization Applying proven technology Increasing outsourcing of non-core functions Increasing customer service levels

6. Companies are now placing more focus on the supply chain to transform their businesses… Radically changing the way they think, organize and execute Integrating end-to-end from opportunity to cash Looking at the end-to-end processes horizontally vs. in silos Creating high value services Reinvention using breakthrough business models

7. ... to build a competitive advantage and reach strategic objectives on demand supply chain Responsive Variable Focused Resilient Cost-cutting focused on optimizing internal processes Reinvention using breakthrough business models

8. Leading firms are progressing toward the vision of an on demand, customer-driven supply chain – one that is integrated end-to-end across the business and with key customers, partners, suppliers & service providers. on demand Traditional S tatic Supply Chain Horizontal Integration Functional Excellence External Collaboration on demand Supply Chain Those companies with high performance supply chains carry less inventory, have shorter cash-to-cash cycle times and are more profitable. Source: “The AMR Research Supply Chain Top 25 and the New Trillion-Dollar Opportunity” AMR Research.

10. In 2005 IBM GBS carried out surveys on value chains in all major developed countries. North America Western Europe Japan Australia/ New Zealand China India The survey design with benchmarking metrics was a collaborative effort

13. To achieve profitability objectives, firms concentrate on best fit to customer requirements, on supplier collaboration and on global sourcing. Strategy and Initiatives What is the primary strategy for your site’s new product development efforts? What are the key factors (initiatives) to achieving your objectives?

14. Implementation and effectiveness of NPD practices differ by geography. Overall, collaboration with customers is most widely implemented and most effective Practices > New Product Development To what extent have the following new product development practices been implemented at your site? How effective are those practices? 96% 96% 81% 59% 88% 48% 66% 58% 83% 87% 74% 91% 92% 91% 95% 85% 88% 73% 81% 95% 85% 92% 80% 90% 72% 89% 96% 97% Australia/NZ Japan WesternEurope North America

15. While on-budget performance is generally better than on-time performance, both are clearly below target. Performance Metrics What percentage of new products is launched to market on-time? What percentage of new products is launched to market on-budget?

17. Direct sourcing from low-cost jurisdictions is on the rise, while sourcing from developed countries is stable or decreasing. Practices > Sourcing & Procurement W.Europe North America Japan A/NZ

19. With the exception of Japan, logistics practices are widely implemented. A formal distribution strategy and differentiated logistics services are among the most effective practices Practices > Logistics Effectiveness To what extent have the following logistics practices been implemented at your site? 87% 98% 75% 79% 83% 97% 80% 79% 89% 99% 82% 86% 92% 96% 89% 92% 81% 91% 81% 65% 95% 96% 75% 87% 98% 97% 88% 89% Australia/NZ Japan WesternEurope North America

24. Where are you on the journey to supply chain maturity? S tatic supply chain Horizontal integration Functional excellence External collaboration On demand supply chain Time Supply chain maturity and benefits

25. A Collection of Observations, News, Resources & Innovations on the changing nature of Supply (chain) management http://aconris.wordpress.com/