The Infosys global supply chain management blog enables leaner supply chains through process and IT related interventions. Discuss the latest trends and solutions across the supply chain management landscape.

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March 03, 2010

Removing Cost from your Supply Chain - Push it OUT not DOWN

Opportunities galore when it comes to pruning down cost in Supply Chains. Firms focus both internally i.e. within their own house and also externally by partnering with their customers and suppliers. But in their singular objective to cut cost, firms often focus narrowly and tend to forget that cost cutting initiatives ought to apply to the whole chain. If a firm benefits at the expense of its suppliers and/or customers, it is power play and gaming at its best (and supply chain partnerships at its worst).

 

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February 27, 2010

Technical Architecture and the silos thereof....

I was recently sitting in a café a flipping through a magazine on Green Architecture for Retailers. It included the entire gamut of retailers - apparel vendors through grocery vendors and how they wanted their stores to be green; Emphasis on green paints, green lights, recyclable paper towels and so on; the investments and the returns thereof; testimonials that justified the idea, the ones that stressed on the longevity of these implementations and those that cautioned the reader.

 

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February 24, 2010

Supply Chain Predictions for 2010 - how far are we from our end-state vision?

Last month, Infosys got a call from Supply Chain Digest magazine, courtesy the editor-in-chief Dan Gilmore to air our views on the key trends for Supply Chain Management in 2010. Supply Chain Guru Predictions for 2010 published earlier this month covered a set of 5 other eminent folks from MIT, Gartner, Descartes and so on, so I was happy for the opportunity to be featured amongst these industry thought leaders.

As primarily a package supply chain enabler, I stuck to my knitting and covered my theme along two lines (a) Improving efficiencies in the back-end supply chain to reduce costs and (b) Enhancing end-customer experience by augmenting the front-end supply chain. People ask me where the relentless pressure to slay every efficiency killer would end up. What next after Multi-channel commerce, end2end procurement, green asset management... whither goes SCM end-state?

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February 14, 2010

Y2010 & Ahead – value chain trends in emerging economy – Part 2 (Technology Trends)

In the prior blog on this topic, I had described a few value chain trends for Y2010 and beyond. In this blog, I will outline a few technology trends linked to these value chain trends.

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February 11, 2010

Y2010 & Ahead – value chain trends in emerging economy – Part 1

It takes a crisis to bring out the best of our innovation and constructive potential. A crisis helps us focus on finding and doing the right things and breaking the barriers and maintaining status quo.  This has been a common theme for most of my clients who I have been associated with in Y2009. As the economic recovery seems to be taking roots, I anticipate the following trends to strengthen especially in the manufacturing sector, as we look at Y2010 and beyond.

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January 29, 2010

Leveraging SRM techniques to build business teams

One of the key objectives in the existing challenging environments is to develop long-term, productive relationships with the internal customers who are stakeholders within the procurement business team. This is interesting observation and SRM techniques can help organizations in building strong relationship with internal customers through foothold strategies that leverage long term relationship.

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SCOR -S Certification; a boon for students

Great news awaits students expecting to launch their careers in supply chain. The SCOR Scholar (SCOR-S) certification program has been launched by Supply Chain Council in 2010-2011. Designed for university students who do not yet possess significant on-the-job experience, SCOR-S certification will demonstrate a basic understanding of how to use the SCOR Framework for supply chain management. “The SCOR Scholar certification will be one of the only programs in the world that provides students professional certification of a methodology for managing supply chain performance,” says Caspar Hunsche, SCC Chief Technology Officer. “In addition to core supply chain management knowledge, SCOR-S certification will send a strong signal to potential employers of a student’s interest and ability to excel at a supply chain career.” A detailed training catalog can be downloaded from Supply Chain Council. Workshops include SCOR Framework, Implementation, Integration, Benchmarking, Performance based Logistics (PBL), Cost Modeling and Supply Chain Risk Management. In a way, such specialized training programs open thinking and real-world practice possibilities for students. Besides, such forums and certifications bring relationships with SCOR practitioners and teachers who meet and resolve practical supply chain challenges in their day to day operations. Let’s discuss the significance of the SCOR-R certification. Students can get an insight into supply chain basics and industry processes from experts. Understanding of SCOR benchmarks and process drivers by specific industries help align supply chain academic knowledge with indicators one must look for to realize business performance. Next, such certification helps students edge out competition when it comes to presenting themselves to prospective employers. Ability to relate to critical aspects causing a business constraints become clearer compared to trivial facts. Inter-relationships between various operational entities are key to finding a resolve to today’s supply chain problems. The SCOR-R experience will enable students to balance supply chain risks and rewards more effectively. This is just a few from the list of many benefits that students can gain from this certification from the Supply Chain Council. Well started is half done. This cannot be truer especially when it comes to beginning a career in an exciting profession of supply chain.

January 28, 2010

Automotive manufacturers of 2009: Numbers convey their Supply Chain behavior

So the “Report cards” of the automotive manufacturers in US are out!! There are contrasting realities and some startling facts!!!. Do the Japanese and American car manufacturers behave the same way in the face of recession? How do their manufacturing and supply chain strategies reflect on their overall performance? Are there any “dark horses” among the American manufacturers who would pose the biggest threats to the Japanese in future? Are there laggards among the Japanese who would have to face the threat of survival in future? The numbers convey their behavior!!

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January 27, 2010

The Pit Stop - An Agile Supply Chain

I had the opportunity to attend a seminar on "How to Gain Competitive Advantage with End to End Supply Chain Visibility" sponsored collectively by Sterling, Deloite and GS1 held at Oxfordshire, UK sometime in November last year.

Deloite presented how important it was to maintain focus on business operations, with a clear emphasis on working capital optimization.
GS1 (They design and implement global supply chain standards) delved on the need of standard based solutions that enable organizations to gain visiblity of specific assets and how this in turn is driving process improvement throught the entire supply chain.

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Decide where you integrate: MCO does not equal MCC!

It’s the beginning of the year and our campus here at Bangalore is abuzz with client visits, with sometimes the Bangalore campus alone hosting 4-5 client visits in a single day. Budgets are being cast, everyone is looking for the right drop box to put their IT dollars and wait for maximum magic for the amount spent. While I am not involved in a majority of these visits, there's one industry vertical where SCM practice consistently gets invited to present their point of view, viz., Retail. My reasoning for this is that there’s really no other industry where one encounters so many best-of-breed SCM packages strung together by each of these retailers in a collage uniquely their own.

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January 25, 2010

Profiling Paradigm Shift in the Package World

The way applications are resourced these days have a number of applications on a single virtualized bed of infrastructure be it private, public or hybrid deployment models. Application vendors are talking about multitenant models. Service providers are hosting tailored application platforms for their clientele.  The dynamics of hosting, appropriation of resources, and application customization is quiet different. In my previous blog here I urge on a stronger and proactive production environment. So what is necessary ingredient to bring that level of sophistication? The answer is the ‘profiling horizontal’. So how and why is it relevant to particularly SCM and generically packages. I take Sterling OMS as a case study to convey my view points.

 

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January 22, 2010

Being Lean in Supply chain

Well, this blog of mine is different in many ways, from the ones that I have posted so far. I am not going to write too much to describe this topic but I am more interested in knowing what you all know. I want to reach out to each one of you to know what you have seen in industry either as an operations guy or as a consultant. Even if you have not seen it being practiced in real life, I am sure you would have some serious opinion on this matter.

The topic is very simple and well-intuitive. My question is: Have you seen “lean principles” being practiced in supply chain in any industry (preferably consumer goods/discrete manufacturing). I know the term “lean” has been used or mis-used very often, but I am open to hear anything from you – just take a pick, think and find out instances from your experience, that you can bucket under being “lean in supply chain”. Do not just restrict yourself to manufacturing...

Let me give you one example: recently, I had a discussion with a Supply Chain Head of a leading consumer goods organization and they intend to implement a “pull based” system in their supply chain.

Consumer goods companies have been pioneers in supply chain and their performance in supply chain has been best-in-class by any standards. Traditionally, we have seen organizations especially, consumer goods, running a typical push model where sophisticated forecasting is done to predict demand, goods are manufactured and distributed to various POS locations as per the dispatch plan. The product is actually pushed down in supply chain and focus is to improve forecast accuracy because that really drives everything else.

On the contrary, here is this company that would like to implement “pull system” and do away with forecasting to the maximum possible extent. To me, this is one true example of being lean in supply chain. I have always seen companies focusing on improving traditional push model that I described, but I have never seen a “pull model” running anywhere and hence this blog…

Going back to my question to all of you:

Do you think such practices exist in companies (esp. consumer goods)? I don’t know any company implementing a pull methodology in supply chain (please provide examples other than Toyota)? How do you marry push and pull in the supply chain, and where does it exist? Where is the Customer decoupling point? What tools do you use? How do you drive this initiative – what are the critical success factors?

Please share your experiences and insights – looking forward to hear from this great group of supply chain leaders…

December 15, 2009

Chief Supply Chain Officer (CSCO) – How to manage multiple supply chain dilemmas

I have always wondered about how a Supply Chain head is able to manage multiple strategic issues simultaneously and what could be the approach that he/she could be taking to drive critical projects or initiatives to tackle most of such issues. There are various questions that I have in mind and would like to seek your opinion for each of them. Questions like:

  • How does one identify the issues that are more critical? What are different parameters that influence issue identification process?
  • What’s the approach for deciding the list of best-fit actions?
  • How does one prioritize these actions – what’s the typical decision framework?
  • How does one decide the modus operandi – what could be the best operating model to execute those actions at the ground level?

 

I am not sure if I have answers for all of them and I do believe that the answer for each question will vary across companies since every single company differs in the way it is structured and the way it operates. But these questions are equally valid for all companies. Generally speaking, what has been your experience? Put yourself in the shoes of a supply chain leader and then think about your approach within a set of constraints, uncertainties and performance pressures that a CSCO has to deal with.

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December 07, 2009

SCM cross pollination: Ikea and the Indian bi-cycle manufacturers

Supply Chain is a horizontal function”, says the voice aloud. “Big deal”, I say, smirking. “This essentially means that it is agnostic to industry sectors”, continues the voice. “Natural”, I say still smirking. “It is thus fair to expect that concepts and best practices applicable in one industry sector can be leveraged for another sector”, the rich baritone voice states. “Fair enough”, I say, continuing to play ball not knowing where we were headed. “As a supply chain consultant, do you think you have lived up to that expectation?” No longer in the dark and no longer smirking, I turn diplomatic and deflect this query to the readers.

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November 27, 2009

Buffett’s bet on railroads- basically, a bet on America?

Hope you had a great time with your family this Thanksgiving. For me, Thanksgiving was an excuse to maximize my time with my family before they left for India this coming Sunday on a three month long vacation.

Anyway, coming to the topic of this blog, today I watched this amazing show on CNBC called Warren Buffett and Bill Gates - Keeping America Great, where the two greatest legends of the current times took questions from Columbia B-School students on various topics ranging from the economy to philanthropy.

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November 21, 2009

The Death of DRP- an eyewitness’ account

I simply loved reading Lora Cecere’s blog titled The Death of DRP. I loved it, because it brought me a feeling of déjà vu. You see, for the past few years, I was part accomplice and part eyewitness to the slow murder, while working on a supply chain transformation program for a leading CPG.

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November 12, 2009

Nostradamus, 2012 and Cloud Computing!!!

Nostradamus is known for his ominous, predictive, and mind numbing riddles of many disastrous events that have changed the course of history as we all know. On a separate note, there are plenty of influencing theories about how this world is coming to an end on 2012 Dec 21 that are astrological – such as Mayan calendar, and astronomical – such as an approaching star, in nature (check out the movie 2012 releasing on 13th Nov). I’ll leave to y’all-readers of this blog to pursue this interest further.

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November 08, 2009

Impact on Warehouse Management systems in context of gATP implementation

 Global Available to Promise is one of the most promising modules of SAP to manage a sales order. The module has far-reaching impacts on business processes right from Sales Order acquisition to the warehouse level fulfilment strategy. In this blog, we will try to understand how gATP implementation (one of the core supply chain modules of SAP) is having far reaching consequences on warehouse management processes.

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November 07, 2009

Being Unique with MCC: Can Something Buried Under The Hood Be A Differentiator?

Earlier this week, I was in a dinner meeting with the VP of e-commerce at a large general merchandise retailer along with some others from his management team. This was an all-hands meeting of vendor managers whose teams are helping the retailer string together a viable online retail channel. During the course of the dinner, I and another collegue got to spend a surprisingly uninterrupted 20-or-so minutes with the VP (considering the clamour there, it certainly was surprising and may be it helped that none of us were smoking!). Among various things we discussed, one comment he made caught my ear. He felt that in the entire supply chain transformation that's being conceived, differentiation can only be realized via the e-commerce front-end application. Rest of it, order management included, are just supposed to fulfill pre-ordained roles in a predictable fashion.

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October 28, 2009

So is SCM Transformation an Oxymoron or a Holy Grail to aspire to?

Transformation is a much-used (abused?) word these days. So, when I read Bob Ferrari's guest column at our blog site (http://www.infosysblogs.com/supply-chain/2009/10/resolving_the_constant_debate.html), something I keep wondering periodically came to my mind again - Is SCM Tranformation an oxymoron or is it actually a valid proposition? The context the word "transformation" is used currently refers to mega-sized, multi-year, multi-million, global-scale, rip-everything-off & replace programs. Since SCM is inherently an outside-in domain, the typical definitions of transformation may not apply.

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October 26, 2009

Resolving the Constant Debate of Build vs. Buy of IT Applications Addressing Supply Chain Needs

Product-focused and service-related supply chains continue to face unprecedented challenges.  The ongoing effects of the global recession, rapidly shifting markets, increased global presence, and more empowered customers collectively place extraordinary challenges on supply chain business process capabilities. The notions for fostering the most efficient, as well as agile supply chain capabilities, can sometimes be at odds, and flexibility in desired capabilities often becomes the overriding objective.

In my consultations with supply chain and IT executives, I often encounter a constant debate regarding contrasting needs to augment information technology capabilities on either a “develop internally” or “externally buy” perspective. The debate is often embedded among two different situational approaches.

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October 23, 2009

Thoughts on CSCMP 2009

This year’s CSCMP (Council of Supply Chain Management Professionals) global conference in Chicago was . . . well, a bit subdued.  While attendance was not surprisingly down from 2008, I feared it might be lower, and most people I spoke with seemed cautiously optimistic about prospects in 2010.

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October 13, 2009

Getting to the heart of Supply Chains : CSCMP Conference 2009

I recently attended CSCMP Annual Conference in Chicago. This was the first time I was attending this and it was a very different experience compared to events – AMR, Sapphire, SAP SCM , Oracle Open world where the focus is usually more on technology & applications. The discussions, sessions, vendor booths, even the informal huddles are poignant with how, why and what should be the role / play of technology in managing supply chains. However, CSCMP was indeed a different setup. The sessions, discussions and huddles were closely knit around topics close to business & supply chain operations with technology taking more or less back seat.To sum it up, it was “methodology before technology” imprinted all over.

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China’s Supply Chain: The currency factor

After writing about the manufacturing priorities that drive China’s supply chain (here) and about Supply clusters that play a vital role behind China’s rise in manufacturing (here), let me continue on the macro view of China’s supply chain – this time highlighting the role of its currency (RMB) in fueling its supply chain.

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September 23, 2009

Visualization: What is in store for service providers?

It was again time to return to India after an assignment at the client site and as most of us know, that means it is shopping time. So I logged on to some of the apparel websites. I found the experience to be very agile. AJAX and all.  Intuitive too as if there was a sales-fairy-god-mother looking over me.

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September 17, 2009

Video:Accurate fulfillment or A Smooth Checkout Experience? Now you don’t really have to choose...

Online shopping has been less impacted from recessionary pressures and has continued showing upward growth. While online shoppers take quick and often impulse decisions, there has been a marked increase in shopping cart abandonment due to uneven user experience. This trend has been largely attributed to a slow and cumbersome checkout processes. In crafting the right shopping experience, retailers are caught between speed and efficiency of check-out process on one end and the need to have accurate inventory picture at the other, with this picture sourced from back-end supply chain applications on a near real-time basis. In this video blog, I share an easy-to-implement approach to front-end inventory visibility by striking a balance between website performance and accurate fulfillment using item/inventory classification principles coupled with inventory synchronization rules. I also talk about a differentiated inventory visibility strategy through which one can do away with the need to maintain inventory positions for 100% of the catalog. The complete paper on this paper was published by Manufacturing & Logistics IT and can be read here


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September 13, 2009

What drives China’s Supply Chain – Quality, Cost, Time or Flexibility

Fresh from a study tour to China and tired after submitting a lengthy thesis on China’s Industry context, let me quickly pen a few lines on the competitive priorities that drive China’s Operations and Supply Chain.


 

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Keep it simple and Stick to basics

This time I am going to share something that I have observed over a period of years working in industry and now as a consultant in supply chain domain. And, it is not based on just one or two experiences, but something that I have really seen at many occasions. I am sure, most of us would have experienced it too, that business users don’t need and talk those ‘big and heavy’ words or jargons. On the contrary, they look out for some simple solutions to take care of their business problems. The problems could be and in fact, are multi-dimensional and fairly complex but what they need is a ‘simple and basic’ solution that works fine for their set of constraints.

In my opinion, lot of times, people tend to talk in air without actually understanding issues that the client is facing, and use such heavy jargons as if that’s one quick pill that will solve all the problems. I personally feel, that we should be extremely careful and cautious of ‘just’ talking jargons; I am sure if we just stick to our basics, it will be more than enough for most of the problems that people face in business. Let me share few instances that made me felt so…

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September 04, 2009

Contract Manufacturing - A New Kind of 3-Way Match

The traditional problem of matching PO to Invoice to Bill of Lading – a problem because they usually involve multiple organizations and multiple systems – got me to thinking about another sort of 3-way matching problem.  There are a lot of large OEMs out there who rely upon contract manufacturers to produce finished product for them, and who also rely upon them to ship to the OEMs’ customers.    I was reading another blog site recently and came upon someone who was describing how they handled this process.  Essentially, they said that once the order has been placed with the supplier or contract manufacturer, they “assume that the supplier will get the product to our end customer on time.” That worried me a little.

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August 27, 2009

Tapping Collective Maintenance Wisdom - An EAM Route?

I recently got a chance to go through an interestingly titled research report from Bill Polk of AMR going by the headline "Asset Management Algebra: EAM = ROI". In these times of increasingly deficient attention-spans, reading a 2-pager is always better than reading a 20-pager with authors belaboring the same point in multiple ways.

Apart from the usual benefits of EAM (ROCE, efficiency improvements, structured information etc) and its new found importance (movement from tactical to strategic), an interesting point which I haven't come across in many other places was about "Capturing and preserving data from an aging workforce". While implementing EAM systems, we typically think of labor management (thru the EAM app or via a little help from more high brow "Workforce Management Systems or WFMs") as a way to capture skills of the maintenance personnel thus making sure the right party is assigned to the right work order.

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August 26, 2009

Supply Chain “Proverbs-to-ponder”

IDENTIFYING CAUSES FOR UNSUSTAINABLE BEHAVIOR

Efforts for sustaining supply chain benefits have been under fire. Business requires supply chain programs for implementing their strategies. Variability, especially uncertainties in operations dim the chances for even the best solutions to return results in a consistent manner. Sustainability, is taking center-stage for CXOs and I see them scramble for ideas that have demonstrated results.

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August 21, 2009

Is Software Really A prerequisite in running a supply chain – Part 2

This is part 2 of my blog on evaluating the role of software / IT systems in running a supply chain.

In the prior blog I had highlighted a few questions on what are the pre-requisites for enabling great supply chains and while software is indeed a key enabler, it is not sufficient alone to make a successful supply chain.

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August 17, 2009

Poll on type of delivery model adoption for implementing TMS application in your organization

Transportation Management Systems (TMS) have evolved over the past few years and are used as a point of leverage to bring in ROI by effectively automating the transportation function for higher visibility and collaboration across the supply chain including the carrier partners.  
Global organizations are unlocking business value from their TMS by deploying them either via the on-demand or the on-premise space.
The common measures considered for narrowing down to one of the delivery models are  faster reporting, non disruptive implementation and shorter lead time for higher ROI.
Is your TMS implementation a  success in your organization via the  on-demand or the on-premise delivery model..
Participate in our on-going series of Supply Chain polls to gauge the trend across the industry in order to provide organizations insights on key areas of supply chain.

August 12, 2009

Is Software Really A prerequisite in running a supply chain – Part 1?

“Software is not a prerequisite in running a supply chain”. I heard this statement while attending SCOR framework workshop sometime back in Chicago. This sounded interesting and my first reaction was “off-course, look at the mess around the businesses today despite having most sophisticated software in place”. 

Having said that, I was not ready to accept that supply chains can survive in today’s world without software systems. Organizations have made significant investments in implementing automation and software systems in supply chain and it is practically impossible to visualize a supply chain in today’s world without IT or software system. 

Yet, there was something about this statement which I couldn’t completely discount. So, I started probing this a little deeper and in the process the following questions emerged: if software is not prerequisite, then why organizations keep on spending millions of dollars on IT systems, what is really needed to run a supply chain, how software / automation / IT systems add value to supply chain and what is required to derive the value out of these systems. My post aims to put some perspectives around these questions.

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August 10, 2009

Is the decision maker VP-Supply Chain or VP- Marketing?

But then, why is VP-Supply Chain not involved in the picture?” I asked my Marketing professor. There was a brief pause as the prof took his time to address the digression. We were discussing the case of Cummins Inc dating back to 1983 when Cummins faced a distribution crisis in Venezuela due to the sudden devaluation of the Bolivar (Venezuelans refer to it as the black Friday).

 

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July 21, 2009

Are your customers reaching out to you for repairs?

Scanning my daily dose of RSS feeds I came across a very interesting piece from Farhad Manjoo where he tracks a growing phenomena of "Self Repair" in consumer electronics. He gave the example of a company that provides self repair guides and spare parts for Apple customers who would like to extend the life of their iPod or iPhone and are happy to do some tinkering at home while at risk of going out of warranty. This is a great example of customer demand being fulfilled by an opportunistic service provider in the white space left by the manufacturer/retailer in reverse logistics.

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July 17, 2009

Big brands doing online war-dances mean more SCM components to fix

Last week my colleague Karmesh Vaswani, who heads client services group for Retail & CPG vertical in Europe forwarded me a very interesting article from Financial Times titled "E-retailers find big brands hard to touch" from Samantha Pearson (dt 08-Jul-2009, Page 20, part of FT series Dotcom Redefined).  There were a number of interesting observations in there starting with the dominance of the traditional giants like TESCO, Argos and Marks & Spencer in the Top-15, how the predicted dot-com way of buying never really became de-facto with a forecast of dot-com retail sales reaching just 10% by 2013 and also, major challenges faced by the diverse set in the top-15 as they try to ramp-up their sales online. One specific point to note was that Amazon.co.uk rules supreme (with Amazon.com independently at no.4) and would be definitely the one to beat, when it comes to dot-com revenues as well as e-commerce & fulfillment models.

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July 07, 2009

Is “Supply Chain function” a critical function to business?

This blog is a representation of my feelings and thoughts about the significance of supply chain as a function. I have been associated with supply chain for little less than a decade now, and based on my experiences and interactions with supply chain practitioners, I feel that supply chain function has slowly started gaining importance in the industry. We know that companies are driven by functions that drive business, get revenue and manage money. And therefore, functions such as Sales, Marketing and Finance have always been the pillars of any organization, independent of its size and scale. Having said that, I feel that over the past few years, supply chain as a function exists as a more formal organization and has grown from a mere supporting function to the one that has a direct impact on a company’s balance sheet. As per one of the articles in AMR Research, the average tenure of a supply chain organization in consumer products is eight years. So, there is still a long way to go from here.

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June 15, 2009

Smarter Planet makes Smarter SIs too, especially if it's EAM

One of the major thrusts we have been seeing with IBM of late is the "smarter planet" campaign. Stripped off the hype (justifiable for any marketing campaign), its a terrific way to differentiate oneself from mundane IT related offerings to something truly (in the real sense of the term) transformational. Back in April, CNN Money had am exhaustive article on the same topic titled "IBM's grand plan to save the planet", with the byline "Here is CEO Sam Palmisano's formula for changing the world: Find problems, throw in billions of dollars in R&D, add consultants and an earnest ad campaign - and watch the profits roll in."

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June 10, 2009

Key themes at Customer Connection 2009 - “Connect & Collaborate”, designing applications for the 3G/4G mobile handsets, On-demand & multi-tenancy…

This being my first appearance at a Sterling Commerce Connect event, I was pleasantly surprised at the level of elaborate arrangements, some of which could just be courtesy of the venue that was selected for the event. In an year of economic downturn where several other corporations either reduced the fanfare that goes with such event, moved it to the virtual world or just cancelled their such annual events, Sterling Connect stood tall with themes ranging from “Connect & Collaborate”, designing applications for the 3G/4G mobile handsets, On-demand & multi-tenancy and so on…

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June 08, 2009

“Help! I urgently need to improve my supply chain performance and I have no money!"

This current economy is certainly challenging all of us to do more with less.  As supply chain professionals, how often in the last year have you heard, “Cut costs, downsize your workforce, reduce procurement costs, and scale back inventory, and do it all without impacting revenues or customer service?  Sound familiar? 

We hear from our customers again and again that they need to quickly improve their supply chain performance.  However, customers with large ERP and legacy system investments have difficulty responding to critical business initiatives in a timely and cost-effective fashion.  These projects can take 9 to 12 months and cost over a million dollars.  No supply chain executive or CIO who values his or her job would dare take this traditional mega-IT project to the CEO for approval in this market. 

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June 05, 2009

How do they do it? Strategies for staying in the AMR Top 25

AMR Research released its Supply Chain Top 25 for 2009 last week. Nine of the top ten companies from 2008 were in this year's top ten. In spite of global recession, credit crunch and declining consumer demand the top supply chain organizations were able to maintain their position on the leader board. How do they do it? There are probably multiple reasons that make these organizations best in class, but there are at least a couple that tend to be the key difference maker between the best and the rest.

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June 01, 2009

Amazon for Cloud Computing is as Starbucks for Coffee??

I’ve been globe trotting lately - India, UK, US and such. Living in Seattle puts a tacit yet obliging pressure on you to visit Starbucks. Ordering a cup of coffee after 9 months was an all new experience from the previous time I was there. Double-tall, non-fat, de-cafe, extra-hot cappuccino for instance, Sugar free, soy, cinnamon dolce, and no-whip latte for another. So I couldn’t stop but notice the granularity of the orders and what Starbucks had accomplished in the past 9 months.

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May 19, 2009

Is Supply Chain Planning still the top most priority of investment during uncertain times?

In the current downturn, organizations are typically looking at spending only on sustenance and not wanting to start any new projects/initiatives- however there are organizations which have a clear focus of ensuring that they make the right investments in a downturn to overcome the challenges faced and also be ready when the economy revives. Organizations are always thinking of planning and optimizing their investments and this is more relevant in the current economic scenario. Areas of investment in Supply Chain during the current dark period’ gave us some interesting outcome.

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May 16, 2009

Alignment in Supply Chain – is it really possible?

Recently I read a great news article in Supply Chain Digest titled “Triple-A Supply Chain” that actually talks about the article published in Harvard Business Review in the year 2004 by Hau Lee. I am sure most of you would have read it but for those who haven’t, I sincerely suggest that it is a must-read for all supply chain practitioners. Although the article is more than four years old, it is very pertinent in current business environment. Let me just provide the objectives of the three A’s mentioned in the postingf and then, I would like to share my viewpoints with respect to one of the A’s that I feel is the ‘most relevant and critical’ capability for all the companies. The three A’s that have been talked about are:

a)      Agility – it is about how quickly a company can respond to any change in its business environment. It refers to short-term changes.

b)      Adaptability – it is the capability of a company to adapt to business changes that are more permanent in nature and therefore, it is strategic and has a long lead time.

c)      Alignment – it is the ability to have common and shared interests across the supply chain including vendors and customers.

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May 02, 2009

Sterling Commerce Customer Connection - TMS in an on-demand world

One of the interesting side-bars at Sterling Commerce Customer Connection last week was meeting up with Patrick Connaughton and Raymond Wang from Forrester Inc. I had earlier in the day managed to attend about half of Patrick's session on TMS - SaaS or on-premise" (my apologies Patrick, when there are conflicting sessions, one ends up skimming through two, sometimes three sessions at the same time). One of the great not-fully-solved mysteries in the SCM domain has been the phenomenal success of Transportation Management Systems (TMS) in the on-demand space. Which probably is the reason why Patrick focuses on the whole on-demand vs on-premise debate within the TMS domain with suggestions on how to make the right choices, on partners, data, duration...the works.

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April 30, 2009

Reporting from Sterling Commerce Customer Connection

Earlier this week (Apr 28/29) I was at Sterling Commerce Customer Connection (http://www.infosys.com/supply-chain/sterling-customer-connection/default.asp) where Infosys was a platinum sponsor. Apart from the filial connection (of spinning off Yantra in 1995, which is now part of their Selling & Fulfillment suite of SC), these days we have an increasingly strong footprint in the Business Integration Services (BIS) side of the house as well. The core theme which was repeated several times over and was plastered all over the walls was connect-communicate-collaborate. What came through the various sessions, starting with one of the keynotes from Randall Stephenson, CEO & President of AT&T was how much the parent-child collaboration was on the radar screen for the coming days.

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April 24, 2009

Agile SCM Cloud - How to implement one?

In the previous two blogs I have talked about the possibility of creating a cloud of SCM functions and commoditizing’ em to relieve the user from the tedious task of choosing, procuring, implementing and customizing SCM functions for his business. The general trend these days with the advent of grid and cloud computing is to focus more on the application and its use for the business rather than worry about scalability, reliability and security which are now an integral part of the cloud offerings.

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April 22, 2009

DNA Therapy for Strategic Cost Reduction in Supply Chains

My recent hunt for stem cell banking information in South India got me excited on a subject of high interest in the biomedical world. Stem cell therapy is the latest medical wonder discovery and supposed to be a cure for 70 odd complex maladies of humans, especially interesting because till late these ill’s were supposed be hard to win over with the conventional medical treatment methods - treatments which were more focused on treatment of the symptom or providing a patch solution for the life threatening diseases, not usually a permanent cure.

DNA is the building block of all life and living on this planet. They are the smallest finite elements which determine the characteristic and personality of any individual. DNA or gene therapy gets to the root cause of the problem. They provided the paradigm shift in medical treatment from the symptomatic treatment of the yesteryears to treating or correcting the diseases cells at source.

What has DNA therapy got to do with Supply Chain Management?

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April 01, 2009

Poll on key sustainability initiatives embarked on by your organization across supply chain function

Global organizations are embracing environment sustainability initiatives like never before. Supply Chain Management (SCM) is perhaps the primary choice for companies hoping to realize benefits from green initiatives.

SCM offers great potential for green initiatives in green sourcing, logistics and transportation optimization, packaging, warehouse management, inventory reduction, asset maintenance and product design.

Participate in our on-going series of Supply Chain polls to gauge the trend across the industry in order to provide organizations with focus areas as they embark on greening their supply chains.

March 17, 2009

This Pharma major is doing the right thing by “talking” to its suppliers

Pharmaceutical industry - defensive and an inelastic sector as far as demand is concerned - is known to be relatively less impacted by this recession. But then, it is far from remaining immune and certainly cannot escape unscathed. The lay-off announced by the leading pharma players (Sanofi 650 US sales reps, Novartis 550 US sales reps, Merck ~8000 jobs, AstraZeneca 1400, Wyeth ~5000 and GSK 1000) is proof enough of the problems present in this industry. Though the problems stem from poor drug discovery and expiration of patents, the recession is certainly compounding the situation. Naturally, belt-tightening is high on the corporate agenda with inefficient supply chains ranking at the very top among all the belt-tightening opportunities available.

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March 13, 2009

Is IT really a primary driver for making your supply chain ‘World-class’?

There have been numerous articles or reports written on building a ‘world-class’ or a ‘best-in-class’ supply chain that you would have surely read. Few of them definitely outclass others in terms of the focus and clarity they provide to the supply chain enthusiasts and practitioners. One such report that I would like to bring to your notice is recently published by McKinsey & Company called “The Race for Supply Chain Advantage” – an outcome of an intensive research done, with large multinational companies participating from multiple industry segments. The report provides the six key practices that would drive supply chain performance, and make companies world-class with outstanding results in some of the most critical parameters such as customer service, cost and inventory. I wouldn’t like to comment anything on the practices listed but I do feel worth mentioning an interesting finding in this report and that’s about the better performance of companies with fewer formal IT systems as compared to the ones that have invested heavily into technology.

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March 12, 2009

Has widespread adoption of advanced supply chain solutions reduced the ability to differentiate?

Over the past two decade or so, supply chain operations have become increasingly complex because of access to new global markets and adoption of global sourcing/outsourcing strategies. On the back of these changes, most global organisations have transformed their supply chain processes with significant investments in best of breed supply chain planning, execution & collaboration technologies. If you study the transformation closely, it has actually occured in two waves.

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March 04, 2009

Poll on the type of delivery model you plan to adopt for your Supply Chain applications

How is your organization adapting to the current economic environment ? Tightened budgets across the board are making organizations wary about not only their organization’s financial viability but also their suppliers and competitors.

But most companies are cautiously progressing towards application investment with lots of options /variations, Capitalize the investment in the application vs. Expense, Utilization of IT resources vs. placing the burden of implementation and ongoing management of the application on third party, Customize and interconnect solutions vs. configure and use as OOTB, do the same for less money vs. more for the same price.

Participate in our on-going series of Supply Chain polls to gauge the trend across the industry in order to provide organizations with focus areas as they embark on streamlining their supply chains.

February 27, 2009

Supply Chain - A strategic lever in a weak economy

Today’s news headlines are largely depressing reading. So this weekend I steered away from the newspaper and in fact picked up a relatively new strategy magazine [which will remain nameless]. The magazine headlined a story “Top 7 ways to increase sales” and provided assorted articles on marketing/ how to increase revenue etc. Flicking through the magazine I was pleasantly surprised to see a section dedicated to Supply Chain but was simultaneously disappointed to see only four pages of commentary [out of a total sixty-six pages]on this very strategic lever!

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February 26, 2009

Supply & Demand Forces behind Food Commodity prices: During boom and bust

Thanks to my involvement last month in devising an enterprise application strategy for a food supply chain major – experience is detailed here and here - I had the opportunity to understand the food commodity market a lot better. And like any other market, the forces of Demand and Supply are much at play to decide the market price equilibrium. Let’s look at those forces on the back-drop of the unprecedented food prices last year and then see the impact of recession on these forces. A run-down on the demand forces at play first:

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February 20, 2009

From Customer-Facing to Customer-Serving: Keeping the Supply Chain investment focus

With recession fears forcing a cut-back on spending, there's greater competition for investment dollars among business functions, among departments that run those functions and the respective apps they run on. In such a scenario, it’s natural to think about putting in more money on customer-facing applications and functions like sales & marketing at the cost of back-end or less visible functions, which may all get clubbed together as support stuff.

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February 16, 2009

AGILE SCM CLOUD – Why do we need one?

Because we do. Is it that simple? No way.

I guess the answer to this question manifests when we take a close look at any SCM application environment and the landscape of the hardware and software technologies associated with it and the amount of effort required to integrate these applications.

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February 10, 2009

What IT hooks do 3PLs hang their business coats on?

The global economy is changing. That's arguably the only thing that can be stated as fact about this change. The only other thing that could be stated as fact is the continuous need for corporations to make profits, serve customers and to provide value to shareholders. This is true for 3PL providers and their customers too. So, what do 3PLs do to be prepared for the coming change? What are the IT hooks they hang their business coats on?

I will be sharing my experience with the facets of 3PL IT force multipliers on 24th Feb 2009. Please register here to be a part of the webinar.

 


 

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January 27, 2009

Poll on key Supply Chain investments areas in your organization

How does your company respond to a downturn? While some companies defer new initiatives, Flat World companies make long-term strategic supply chain management investments. They adopt a 'win in the turns' approach to prepare for the upturn. Technology and streamlined processes will deliver savings during these hard times besides enhancing efficiency in the long term. Participate in our on-going series of Supply Chain polls, which aims to gauge the trend across the industry in order to provide organizations with focus areas as they embark on streamlining their supply chains.

January 15, 2009

AGILE SCM CLOUD – What could it mean?

First of all I must let you all – the readers, know that this is the first of the three parts blog on Agile SCM Cloud.  So please stay tuned for the “AGILE SCM CLOUD – Why do we need one?” and “AGILE SCM CLOUD – How to implement one?

We are living in great times as far as Information Technology is concerned. There is a wave of information explosion and a corresponding need to process it efficiently and effectively. For example, search for new energy source or satellite downloads for weather forecasting. On the other hand almost contrasting to the computing needs Moore’s law is reaching its limits considering atomic sizes of the transistors leading to dual, quad and 8 core processors. Companies like Intel are even rolling out instruction sets to support multiple operating systems. All of this has an impact on the way we have been computing so far – a piece of software tied to a piece of hardware and both of these tied to a business need. We are now thinking of dynamic environments that grow and shrink to meet the demands. Not to mention the biz terms like Grid Computing, Virtualization, Software-as-a-Service, Utility Computing, Green Computing and Cloud Computing in that order to go with it.

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January 09, 2009

Hypermiling your supply chain

Over the past few days, I've been reading up a bit on hypermiling, a term coined by Wayne Gerdes, considered to be the father of this science (art?) and its foremost proponent. Hypermiling is all about extracting every last mile from your gallon (or kilometer from your liter, if you may), way higher than what's advertised in the mileage sheets and then you push further and get some more. I was going through jaw-dropping antics of hypermilers raising 100mpg figures on hybrids, 60mpg on typical 30-35 mpg high fuel efficient cars like Civics and Corollas and even doubling the performance of the usually riled about gas guzzling SUVs, all as if it’s the most natural thing to do.

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December 04, 2008

Outsourcing in supply chain – a unique way to deploy global supply chain programs

This is based on my recent project experience with one of the leading networking companies in US, which is running its strategic supply chain performance improvement initiative globally. Usually, companies tend to implement such initiatives as a pilot for a select few customers and markets and once the pilot is run for a certain period of time, it is rolled out to other areas incorporating learnings from the pilot phase. The rolling out of such strategic initiatives to all the markets globally is imperative to achieve the desired financial benefits, finally leading to revenue and profit growth.  The key is the global execution that becomes a real challenge in a global scenario, especially when it demands a significant amount of investment in terms of time, cost, talent and effort from teams located regionally.

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November 13, 2008

Good and bad news in Supply Chain improvement programs

I have had several discussions with clients and prospects in the last few weeks regarding their supply chain related transformation initiatives.  Despite (or perhaps driven by) the macroeconomic challenges, most of the companies I have come across are moving forward with such transformation initiatives.  It’s possible that there’s a sampling bias here and I may only be in touch with those companies that are actively pursuing a supply chain related transformation program.  Irrespective, I consider that the good news.

However, as you might have guessed, there’s some bad news too.  Let me illustrate the bad news with a specific example of a client that I recently met.  This is a large F100 class company with a well-known track record in supply chain excellence. The client organization is expanding in new markets and channels and is clearly hurting in the supply chain aspect of that expansion.  The challenges exist at multiple levels – strategic issues of where/how to compete at one end and tactical issues of supply chain execution at the other.  The challenges the client organization faces are, however, so significant that the organization seems completely consumed by it.  Each individual seems to have their own view of what the #1 issue is.  There doesn’t seem to be a clear prioritization based on shareholder value (or similar metric) and no clear roadmap that helps resolve the various perceived #1 priorities.  So the bad news is that some clients are finding themselves in a situation of panic where “we are so busy that we don’t have time to prioritize”.  Are you seeing a growing sense of ‘do something’ panic around you?

November 11, 2008

SCM in a time of downturn

With recession fears taking over large swathes of economy and the new mantra - actually pretty old really - being "cash is king", how would this impact SCM as a domain? There’s a fundamental business angle to this and then there’s an IT program/project side to the story as well. At its core, SCM needs to look at three constituents, suppliers at one end (including the folks toiling for you in the intermediate chains), customers at the other end (retail or B2B across various channels) and the partners through the supply chain, primarily your logistics providers (the movers).

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November 05, 2008

Are Green Supply Chains here to stay?

After doing a deep-dive into the procurement professional’s role in green supply chains in my previous post, I cannot resist but take a step “up” to offer my view on whether Green supply chains are here to stay

I have come across several voices, discussions, posts and opinions that speak about the “falseness” of this entire green movement. That companies are resorting to green initiatives not because of their new found love for environment but instead, are suavely marketing their cost cutting initiatives under a green cloak to win some social brownie points. Compounding this situation is the fact that some companies are blatantly misleading the public on their green campaigns (Terrachoice, an environmental marketing agency, in a survey on green claims of six category leading big-box stores reviewed 1018 products and found all, except one, making a claim that mislead audiences).

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October 20, 2008

End2End SCM can go deeper than the just functions

Last month, I was at the IBM Consultants & System Integrators (CSI) conference at Goa, a wonderfully event-managed event where to my utter delight, even verbose senior folks were brutally cut down from their loquaciousness by the time-keeper's flag. I was invited since Enterprise Asset Management (EAM) is one of the domains I head in my portfolio here at SCM practice. IBM, as many of you would know got into EAM in a big way post acquisition of Maximo app from MRO software. But this post is less on EAM and more on a topic I'm thinking and reading up a little bit these days - end2end SCM and more specifically - why should it just remain at a domain level and not be inclusive all the way down at a deeper infra level?

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September 30, 2008

Do the Supply Chain improvement projects justify the investment?

While I’m not aware of a precise estimate, I’m sure that several billion dollars are invested each year in hardware, software, and services by companies across industries – manufacturing, distribution, retail, utility services, and others – to improve their supply chain performance.

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September 24, 2008

Hasn’t it always been about sustainability

If I were “environment”, I wouldn’t have had it better. At-least not since the dawn of the industrial revolution. The two words - “environment sustainability” - have been in circulation like never before (thanks, I must say, to the humongous success of the award winning documentary “An inconvenient truth”). No wonder then that a Google search gives more than 3.3 million results.

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September 23, 2008

CIO's view of Integration of Supply Chain Applications

Very recently I had the good fortune of having an hour long conversation with CIO of one of our very reputed client organizations. The organization is a leading 10 billion USD+ entity with an illustrious history in the area of Imaging. The client organization has 3 concurrent tools for forecasting used by different internal businesses, a few mainframe applications involved in doing factory level production planning and SAP's evolving solution in the area of supply chain in general. The organization has thus lived and evolved with its supply chain landscape starting all the way from mainframe applications, to best-of-breed and now ERP II planning applications.

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September 01, 2008

Energy Sector and the Supply Chain

Demand and Supply go hand-in-hand. One would be forgiven to associate such a statement with best-in-class supply chain supported by best-in-class IT support systems. This could be a distant dream for few other aspirants. However what I am referring to is the not-so-obvious-but-omnipresent power sector.

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The advent of "on-demand" SCM

 Of late, I’ve been noticing an increasing appearance of the term “On-demand SCM” in the web-world. Inscrutable as it sounds the first time, what got me thinking was the obvious overlap in most articles between SCM as a function as SCM as a collection of IT systems. Standing behind the many wonders of IT-enabled supply chains (and being completely blinded of everything else), we may be forgiven (or burnt-at-stake, depending on who you're asking) for assuming SCM equals SCM apps/integration (Akin to arguing that “child is INDEED the father of man”!)

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SaaS aka Hosted : I think, thats where everyone's heading, how apprehensive do consultants feel?

....everyday, i get 4-5 articles, saying -("A" is looking at Hosted) ("B" is already performing on hosted)  & for ("C" its hosted, all the way), i really wonder if thats the way ahead for product companies to have that "Non-Linear growth pattern", but if everyone goes the hosted way does this mean that, no more consulting, no more consultants

Is the future just going to work in a way "that customers give master and related data en routed through secure VPN's to get businesses running in future, will there still be Business Blueprinting" will there ever be a necessity for consultants to help customer's adapt to Products, still bringing in their domain expertise to mash the product to suit their requirements", will the services companies merge with the product companies, Will there ever be any work for consultants any more, read more.....

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