Reduce Risk in Your Supply Chain with Supply Chain Performance Management

  • by William Newman, Managing Principal, Newport Consulting Group
  • March 12, 2010
As part of its positioning for the corporate boardroom set of enterprise performance management applications, SAP BusinessObjects Supply Chain Performance Management enables full visibility of the value chain using metrics and indicators. Learn how to reduce risks in material and intellectual property flow in your supply chain and create a more effective organization using the features available in SAP BusinessObjects Supply Chain Performance Management.
Key Concept
SAP BusinessObjects Supply Chain Performance Management, as part of the enterprise performance management (EPM) solutions suite, allows you to quickly determine real-time changes to the flow of ideas, material, and products within your value chain, ensuring strategic alignment of enterprise operations based on a holistic and risk-based approach.

As a result of the financial crisis, operations managers around the world have reexamined their operating models and suppliers that participate in their business to achieve higher levels of cost and time efficiency. This reexamination, combined with an overall decrease in risk appetite, is difficult on many fronts as it calls into question old trading partner relationships and the habits that come with those relationships over many years.

Conventional management suggests reexamination built on the current business model to discover ways to make the business more efficient. In the post-crisis world, however, yesterday’s business model may not suit the forward direction of the organization. A fundamental discussion around effectiveness versus efficiency based on new realities is in order.

Unfortunately, for executives and management teams, it makes absolutely no difference if a company with poor operations is efficient. In fact, it can have catastrophic results when a company is simply executing a bad process more quickly or focusing on improvements in areas with little or no relevance to financial return. Figure 1 shows an example using manufacturers, retailers, and distributors in the grocery business. Important upside could exist for particular initiatives (such as perceived value in technology improvements) in one area of the value chain but to a lesser degree in others. Looking at broad, holistic improvements in the overall supply chain to drive effectiveness gains must address these disparate points of view across participating supply chain members.

William Newman

William Newman, MBA, CMC is managing principal of Newport Consulting Group, LLC, an SAP partner focused on EPM and GRC solutions. He has over 25 years of experience in the development and management of strategy, process, and technology solutions spanning Fortune 1000, public-sector, midsized and not-for-profit organizations. He is a Certified Management Consultant (CMC) since 1995, qualified trainer by the American Society of Quality (ASQ) since 2000, and a trained Social Fingerprint consultant in social accountability since 2012. William is a recognized ASUG BusinessObjects influencer and a member of SAP’s Influencer Relations program. He holds a BS degree in aerospace engineering from the Henry Samueli School of Engineering and Applied Science at UCLA and an MBA in management and international business from the Conrad L. Hilton School of Management at Loyola Marymount University. He is a member of the adjunct faculty at both Northwood University and the University of Oregon with a focus on management studies and sustainability, respectively.

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