Is a collaborative approach the best way to improve your supply chain?

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Theres a supply chain evolution going on. Its a subtle shift from the days of supply and demand planning with no integrated processes, to a collaborative approach with suppliers treated as strategic partners, creating Full Network Connectivity. While many companies seek to achieve corporate excellence, many fail to appreciate that this is just one step on the way to a fully networked enterprise.

According to a white paper authored by Charles Poirier, a partner in CSCs supply chain practice and regarded by many as one of the worlds leading supply chain experts: As the supply chain matures as a powerful business process improvement technique and firms begin to reach a levelling off point in progress, there appears to be a dichotomy among the practitioners.

When we review overall results, we find companies that managed to add at least one or two per cent to the bottom line, after all the costs and expenses are deducted from the true savings.At the same time, we find firms that added five to eight per cent to net profits.The difference in results is directly related to how well the firm worked the total assets and resources across an extended enterprise and not just the internal organisation. The mindset regarding use of external resources is central to the resulting dichotomy.

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