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shifting production between installations or business partners。PwC Supply Chain Management Accelerating Cost Effectiveness PricewaterhouseCoopers 2 Supply Chain Management ? The supply chain used to be a simple serial process with raw materials slowly moving in one direction through manufacturing production and onward via a distribution system to retailers and customers. ? Today, the talk is of supply works, parallel chains, enhanced concurrent activities, and “customer centric” with new information platforms and technology set to cut both inventory and leadtimes throughout the delivery pipeline further. PricewaterhouseCoopers 3 Top Issues Facing SCM Professionals In a recent quantitative survey, SCM professionals were asked a openended subjective question, “What are the three biggest issues facing you personally in developing your logistics strategy?” Source: AMR Research 2023 The top three responses were。 Cost (21%), Systems Applications (20%) and Integration (19%) 21%20%18%14%13%13%12%12%11%0% 5% 10% 15% 20% 25%C o s tSy s te m s A p p l i c a ti o nI n te g r a ti o nQ u a l i fi e d A s s o c i a te sSu p p o r t M a n a g e m e n tEB u s i n e s sO r g a n i s a ti o n Str u c tu r eG l o b a l M a n a g e m e n tFundingPricewaterhouseCoopers 4 SCM Benefits Manufacturer Distributors/ Wholesalers Customers Suppliers Retailers Materials Flows Information Flows Cash Flows US panies expect to reap $3400B of savings through a variety of benefits (3 – 5% of revenues) Source: PRTM PricewaterhouseCoopers 5 Move From Push To Pull Manufacturers Distributors/ Wholesalers Customer Suppliers Retailers Manufacturers Distributors/ Wholesalers Customer Suppliers Retailers Make what we sell, not sell what we make! PricewaterhouseCoopers 6 Move to CrossFunctional Business Processes Purchasing Manufacturing Distribution Install/ Maintenance Sales Source Make Deliver Install Sell Order Fulfillment AvailabletoPromise Sales Operations Planning Department Performance PricewaterhouseCoopers 7 Supply Chain Optimization Synchronized, Sequential Planning Forecasting Distribution Planning Manufacturing Planning Procurement Planning Supply Chain Optimization Synchronized, Concurrent Planning Demand Planning Distribution Planning Manufacturing Planning Procurement Planning PricewaterhouseCoopers 8 Purchasing Manufacturing Distribution Install/ Maintenance Sales CrossFunctional Supply Chain Metrics Source Make Deliver Install Sell Perfect Order Process LSL USL LSL USL LSL USL LSL USL LSL USL PricewaterhouseCoopers 9 Sharing and Collaboration Manufacturer Distributors/ Wholesalers Suppliers Retailers Synchronized Pro