【正文】 st of Correction ? Side Effects MIT Forum for Supply Chain Innovation U n c e r t a i n t y……. Financial Impact ? Opportunity lost: unable to ramp up ? Economic loss: unable to ramp down MIT Forum for Supply Chain Innovation Source: Forrester Research MIT Forum for Supply Chain Innovation Source: Forrester MIT Forum for Supply Chain Innovation U n c e r t a i n t y……. Cost of Correction ? Resources ? Inventory MIT Forum for Supply Chain Innovation U n c e r t a i n t y……. Side Effects (undesirable) ? Tackle only symptoms ? Negative fall out MIT Forum for Supply Chain Innovation EBM in SCM offers little ADAPTABILITY to SENSE and RESPOND ( Supply Chain Event misManagement ) ? Insulation of Planning from Execution ? Individual optimisation not SC optimisation ? SmartHub and DumbSpoke Configuration ? Isolation of Environment of Operation MIT Forum for Supply Chain Innovation Source: Forrester MIT Forum for Supply Chain Innovation Traditional ? Adaptive Source: Forrester MIT Forum for Supply Chain Innovation What to do ? ? Understand customer need ? Monitor supply availability ? Manage supply chain partner performance ? Decentralize problem solving ? Monitor corrective actions and feedback ? Include macroeconomic indicators MIT Forum for Supply Chain Innovation Evolving Analytical Tools and Early Users Source: Forrester MIT Forum for Supply Chain Innovation Portfolio of Real Options Source: HP Forrester MIT Forum for Supply Chain Innovation U n c e r t a i n t y……. Financial Impact ? Opportunity lost: unable to ramp up ? Economic loss: unable to ramp down MIT Forum for Supply Chain Innovation U n c e r t a i n t y……. PushPull Case Study by DSL MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Uncertainty ….. Lead Time MIT Forum for Supply Chain Innovation Performance ………. MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Performance ………. MIT Forum for Supply Chain Innovation For same lead time, optimized supply chain offers lower cost Safety Stock Cost vs Lead Time Managing Financial Cost of Uncertainty MIT Forum for Supply Chain Innovation MIT Forum for Supply Chain Innovation Uncertainty ….. Procurement MIT Forum for Supply Chain Innovation PushPull Supply Chains The Supply Chain Time Line Low Uncertainty High Uncertainty Customers Suppliers PUSH STRATEGY PULL STRATEGY PushPull Boundary MIT Forum for Supply Chain Innovation From MaketoStock Model…. Configuration Assembly Suppliers MIT Forum for Supply Chain Innovation to AssembletoOrder Model Configuration Assembly Suppliers MIT Forum for Supply Chain Innovation PLM a cause of UNCERTAINTY in SCM Source: Forrester MIT Forum for Supply Chain Innovation Source: Forrester MIT Forum for Supply Chain Innovation Source: Forrester MIT Forum for Supply Chain Innovation What’s wrong with this illustration ? Imagination is out of focus !! Source: Forrester MIT Forum for Supply Chain Innovation Inventory Man