Supply Chain Management Professional Education Review
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1 SupplyChainManagement PrfessinalEducatin Review Amnthlye NewsletterbyDepartmentfSupplyChain ManagementandMarketingSciences March2009 UpcmingEvents AnnualSCMexecutivecertificatin prgram June10 12, SCMsummitmeeting April1(Transprtatin Security) June4(SCCllabratin) Sept.18(Organizatin Transfrmatin) StrategicPrjectManagement May8,2009 SixSigmaBlackBeltTraining StartingMay15,2009 Frmreinfrmatin,pleasegt urlinkexecutiveeducatin.
2 SupplyChainManagementPrfessinalEducatinReview Amnthlye Newsletterby DepartmentfSupplyChainManagementandMarketingSciences March2009 The Supply Chain Management Prfessinal Educatin Review is a mnthly e newsletter published by the Rutgers Center fr Supply Chain Management and Marketing Sciences (SCMMS SCMMS is a majr prvider f supply chain educatin fr tday sandtmrrw ssupplychainprfessinalsandexecutives.theprfessinaleducatin Reviewwillprvideinfrmatincncerningcurrentandemergingsupplychainissues. Wevalueyurinput.Pleasecntactusatcscm@business.rutgers.eduregardingthisnewsletter rtherscmissues. ValuefPrfessinalDevelpment Everysupplychainprfessinalunderstandsthathis/herrespnsibilityist createandaddvaluefrthesharehlderandthecustmer.prcurement prfessinalsinaverageperfrmingcmpaniesreturncstreductinsupt 2.5timestheirsalaryandinbestperfrmingcmpaniesupt9.0times. Lgisticsandtransprtatinprfessinalsensurethaturprductsreachur custmersn timenmatterhwextendedurglbalsupplychainis. AttheRutgersCenterfrSupplyChainManagementurmissinistensure thatyuhaveaccesstcst effective,wrld classdevelpmentprgrams. Ourlcalpresencehelpsyutgetthebestvaluefryurdevelpment dllar.tlearnmre,visit
3 SupplyChainCmpetitiveIntelligence If yu ask the average senir manager t describe hw cmpanies use business intelligencercmpetitiveintelligenceprcesses,theirreplywillusuallybeintermsf custmers, markets and the manner in which their cmpany is cmpeting t win custmersinkeymarkets.thsefusinsupplychainmaythinkdifferently.weknw thatthesuccessfurcmpanyistieddirectlythwwellursupplychainperfrms. Itwaspreciselythisrealizatinthatdrvenefurcrpratespnsrstrecentlyask ateamfmbastudentstexplrethetpicf SupplyChainCmpetitiveIntelligence. Achangingbusinessenvirnment The Sciety fr Cmpetitive Intelligence Prfessinals (SCIP) defines cmpetitive intelligence as a necessary, ethical business discipline fr decisin making based n understanding the cmpetitive envirnment. Vernn Prir s Glssary f Business Intelligence Terms prvides an expanded definitin: Cmpetitive intelligence is a systematicandethicalprgramfrgathering,analyzing,andmanaginganycmbinatin f data, infrmatin, and knwledge cncerning the business envirnment in which a cmpany perates that, when acted upn, will cnfer a significant cmpetitive advantage r enable sund decisins t be made. Its primary rle is strategic early warning. Whenweapplythisdefinitintacmpany send t endsupplychain,ratherthanits markets,weseetheneedfrthesamerigr,i.e.createcmpetitiveadvantagethrugh the systematic and ethical gathering, analyzing, and managing f data, infrmatin, andknwledgecncerningthesupplychainenvirnmentinwhichacmpanyandits cmpetitrs perate. Strategic supply chain managers need t nt nly knw the strengths,weaknesses,pprtunitiesandthreats(swot s)frtheirwnsupplychains, they als need t study the SWOT s fr the supply chains f their cmpany s key cmpetitrs!
4 In the new business envirnment, the ld wrld thinking abut business and cmpetitiveintelligencewn twrk.thefllwingcharthighlightscriticaldifferencesin theldversusnewwayfthinking. OldWrld Vs. NewWrld Staticcmpetitiveintelligence Dynamic cmpetitive respnse mdeling Rutinereprts CI embedded in strategy develpmentandptinanalysis RespnsibilityfBI/CIanalysts Everyne srespnsibility Driven by individuals and Teameffrt functins Needtknw Needtshare Spradic tp management Deep tp management supprt invlvement Cmpanieswhwanttexcelatsupplychaincmpetitiveintelligenceneedtdevelp the skill sets and rganizatinal structures that prmte new wrld thinking and behavirs.thisgesbeyndthefunctinalbundariesfsupplychainprfessinalsand tuches virtually all areas f the firm.
5 CIisGrwinginImprtance TheRutgersMBAteamcnductedalimitedsurveyfcmpanieswiththefllwing results: 72% f the respndents rate allcating resurces t CI as Imprtant r Very Imprtant The mst imprtant rles f SC CI are t frmulate strategy and maintain cmpetitiveadvantage SystemsandInfrastructurewasidentifiedasthemainareatgatherCIinfrmatin, with Lgistics Management and Lean Manufacturing / Asset Management bth a clsesecndinimprtance. 80%SupplyChainSystemsandInfrastructure
6 60%LgisticsManagementandSystems 60%LeanManufacturingandAssetManagement 40%Suppliers 40%Quality 40%CntinuusImprvement 20%CustmerRespnsivenessandDemandPlanning 20%CntractManufacturers TheCmpetitiveIntelligencePrcessCycle In the January 2007 Supply Chain Management Review, Richard L. Wilkins suggests a framewrkfracntinuusciprcessmethdlgy.wilkinsstates, It'simprtantt nte that cmpetitive intelligence is a prcess, nt a functin. Gd cmpetitive intelligence unflds ver time and prceeds in a methdical way. When prperly implemented,ciwillgiveearlywarningf: Cmpetitivemves. Cmpetitrstrategies. Newprductlaunches. New,emerging,rchangingmarkets. Newtechnlgiesrbusinessmethds. TheframewrkthatissuggestedbyWilkinsisshwnbelw.
7 It is imprtant t apply this same cntinuus prcess framewrk t ur wn supply chainsaswellasthesupplychainsfurtpcmpetitrs.inthiswaywewillbeassured fperfrmingatleastaswellasurcmpetitrs.and,ifweapplyurnewknwledge tursupplychaincmpetitivestrategy,westandabetterchancefgainingadvantage verurcmpetitrs.asinanybusinessscenari,firstmveradvantagecanbecritical. Failuretactcanleaveuslaggingbehindurcmpetitrs. The perfrmance f ur supply chain has a dramatic impact n ur cmpany s cst structure, ability t serve ur custmers, innvativeness and verall return t sharehlders. Cmpetitive intelligence is a business prcess that shuld be applied systematicallyandrigruslytursupplychainandthsefurcmpetitrs. Authredby GrdnSmuther,SenirIndustryAdvisr BasednMBAstudentandindependentresearch
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