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Supply Network Design: Six Key Steps Posted: 24 May 2012 10:45 AM PDT In between attendee meetings and booth duty at the Gartner Supply Chain Executive Conference this week, I was able to attend a good portion of the week’s sessions. I’ll be providing highlights from a few over the next few days. First up, Supply Planning: Beyond the Next 12 Months, with Gartner analyst, Noha Tahomy and Procter and Gamble’s Jake Barr. Most Supply Chains are Historical Accidents According to Jake, the global director of supply chain for P&G, a typical supply chain evolves based on necessity, rather than a strategic plan. Unfortunately, traditional supply chain design could never have anticipated the pace of change we experience now or how quickly innovation happens. As an example, Jake stated that prior to P&G’s supply network assessment, the company was writing off one out of every three dollars that the company brought in due to inefficiencies along the chain. Now, P&G’s supply network design (SND) process ensures that the supply chain meets the business needs of: cost-effectiveness, responsiveness, and pace of innovation. Their are six key steps in the P&G process Business strategy assessment During this stage, the core business team assesses what the business will require to win Six key questions are asked of the different stakeholders (finance, product supply, branding, etc).… Read the rest |
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