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  1. 1. Spring 2006Supply Chain Leader Ideas & Innovations from i2 TechnologiesWhats on the Horizon?Advanced systems, new business paradigms and newmanagement processes will create unparalleled agility, speed and responsiveness to customer demand 7 Principles of Supply Chain AgilityCreating Virtual Verticality in Horizontal Supply Chains A (Software) Platform for the Future Big Is Beautiful at Panasonic Plus: Technology Empowers Hurricane Relief Efforts Impact of RFID Outsourcing Supply Chain Analytics Can Improve Business Results The Supply Chain Company TM
  2. 2. In this IssueCover story Whats on the Horizon? by John CummingsPage 10 A new generation of supply chain management is at hand. Advanced systems, new business paradigms and processes will create more agility, more speed and greater responsiveness to demand than ever before. Supply chain management will become a competitive differentiator, with supply chains pitted against each other and supply chain clusters challenging todays leaders. FeaturesPage 15 Page 22Page 24 7 Principles of Creating A Platform Supply ChainVirtual Verticalityfor the Future Agility in Horizontalby by Sanjiv Sidhu Supply ChainsEmmanuel Sabourin by Hiten Varia and AdityaSrivastava Speed alone wont win the race. New technology is achieving theThe i2 Agile Business Process PlatformHere are seven ways top-performingadvantages of vertical supply chains offers big benefits through thecompanies are gaining speed and without the costs. power of two technology advances:better performance through agility.service-oriented architectures and expandable workflow/process libraries.Case studies Page 20 A major semiconductor manufacturer wanted to sharply increase its on-time delivery to customer-request dates, without increasing inventory. i2 Inventory Optimization provided a flexible, demand-driven approach. Page 27 When a major electronics retailer realized its disconnect between Purchasing and Logistics was costing it customers, it turned to i2 Supply Chain Visibility. Columns Page 29 Collaborative Material Management: New Systems Enable Synchronization Between Procurement and Material Planning, by Sharmistha Dubey Page 32 Transportation Management: Best Practices in Global Logistics, by Razat Gaurav Departments Page 3CEOs Perspective: Looking to a New Generation of Supply Chain Management, by Michael McGrath Page 4Interview: Big Is Beautiful at Panasonic, an Interview with Mike Aguilar, by Victoria Cooper Page 8Focus: Outsourcing Supply Chain Analytics Can Improve Business Results, by Amarnath Thombre, Madhu Rajendran and Lee Wilwerding Page 30 Opinion: What Impact Will Radio Frequency Identification (RFID) Technology Have on Supply Chain Management? by Michael Cohen Page 34 Beyond Business: Technology Empowers Relief Efforts During Hurricane Katrina, by Victoria Cooper Page 36 Inside i2: 2005 RecapFocus on Financial Stability, by Mike Berry See Supply Chain Leader online at www.i2.com. The magazine is published three times annually by i2 Technologies, Inc., in spring, fall and winter. This is its inaugural issue. Supply Chain Leader / Spring 20061
  3. 3. CEOs Perspective by Michael McGrathLooking to a New Generation of Supply Chain ManagementWelcome to the premiere issue of Supply Chain Leader.engine, the customization of software workflows for an In this inaugural issue, i2 Technologies heralds the next individual companys unique supply chain processes was generation of supply chain management solutions and impossible. Now, both those hurdles have been overcome. practices, which will finally allow supply chains to be What are the advantages? The workflows stemming managed cross-functionally for superior performance.from management processes take advantage of best practicesAs was the case in all previous generations of improve-in different industries, so they have a built-in expertise. ment, new breakthrough technologiesservice-orientedTheyre also adaptable, so companies can customize them architectures and business process platformsare enabling to their particular needs. And the combined capabilities the practices of this new generation. I predict the impactof a service-oriented architecture and a platform engine of this new generation will equal or exceed that of previousallow data, applications and workflow processes to be generations enabled by material resource planning (MRP),integrated not just across one enterprise but across enterprise resource planning (ERP) and advanced multiple enterprises, encompassing suppliers, channels planning systems (APS): and other strategic partners. The MRP Generation applied the capabilitiesThe opportunities for better supply chain managementof large-scale computing to enable companies from these new capabilities are endless. Among the mostto calculate material requirements based on whatThe emerging generation of solutionswas needed to achieve sales forecasts.and practices will finally allow supply The ERP Generation enabled the integrationchains to be managed cross-functionally,of supply chain transactions across the enterprise,powered by the new client-server technology.for superior performance. The APS Generation allowed for functionalsignificant opportunties are the ability to shape demandoptimization, using large-memory computing. This and achieve immediate visibility into data, leading to moreresulted in dramatic improvements in optimizationrelevant and current information, and, consequently,of factories, demand and transportation. better modeling and forecasting, planning and decision-But now were in a new, faster, more complex and making. Now, forecasts and plans previously generated more demanding world of supply chain management.periodically can be created dynamically using streaming Globalization has necessitated outsourcing and createddemand data. a greater need for multi-enterprise planning and risk Also, demand can be shaped based on supply chain management, as well as for more dynamic forecasting.contingencies engendered by man-made and naturalThe time has passed when a functional focus alone events, supply and demand disconnects and competitive on optimizing factory production, transportation manage-actions. The greatest benefits of these new capabilities ment and demand forecastingcan be competitive. will come in increased revenues and gross margins.Yet, the idea that a company can build anywhere and sell At i2, were committed to continue our leadership in everywhere tugs at traditional notions of centralized versuscreating innovative, new solutions based on a deep and decentralized organization and governance. It is nowfocused understanding of supply chain issues and processes necessary to rethink and reorder workflows, process and an insistence on pushing the bar upwards in achieving management, partnerships/alliances and business models excellence and competitive superiority in supply chain all requiring cross-functional supply chain processes.management. Supply Chain Leader is not just a way for usOver the past five years, i2 has invested in developingto share our thought leadership with you; its also a way the i2 Agile Business Process Platform, built withto recognize your companys supply chain leadership in a service-oriented architecture and a software libraryits own right. of workflows (i2 Studio). Before the advent of service- oriented architectures, the systems-integration cost to Michael McGrath is CEO and President of i2 Technologies, the founder assimilate data from a wide range of applications serving of two other software companies and the cofounder cross-functional processes was prohibitive. But with SOA, of management consultancy PRTM. He has authored five books on the subject of high-technology manage- applications can be plugged in as services. Likewise, ment. Contact: supply_chain_leader@i2.com. until the development of a business process platform Supply Chain Leader / Spring 20063
  4. 4. Interviewby Victoria CooperBig Is Beautiful at Panasonic The consumer electronics giant is betting on large-screen plasma TVs as the display technology of the future. In February, Supply Chain Leader interviewed MikeWhy were you interested in moving from sales into Aguilar, Panasonics Senior Vice President of Supply supply chain management at Panasonic? Chain Strategic Initiatives. Aguilar has been with Panasonic for 29 years, recently moving into this position after leading I wasnt. Our chairman, Yoshi Yamada, asked that the companys North American sales operations for five I make the move, and I finally saw the wisdom in it. years. The consumer electronics division of Panasonic is Panasonic wants to maintain its market lead in plasma preparing for the conversion to the digital spectrum by thedisplay sales and that will require changing the basic United States in February 2009. The question is, how fastbusiness paradigm between us and our channel partners. and how big will the spike be in sales of high-definitionMr. Yamada thought that someone with a good sales products and which technology will win? To answer presentbackground would understand what the channel partner demand and build for more, Panasonic is opening its fourth and the end-consumer need. He understands that the plasma display plant in Amagasaki, Japan. Once it is fully consumer doesnt care so much about the technology as operational (expected in 2007), Panasonic will become thethe solution: Is the picture quality good? Can the user largest plasma manufacturer in the world. The companyshow home movies and still photographs on the screen? commands the largest market share today (hovering at 50Is the audio quality good? Mr. Yamada wanted to change percent) of a market expected to reach 10 million units by the marketplace, to enhance demand for larger screen 2009. Plasma TVs currently account for 90 percent of the displays, a high-ticket item. global demand for flat-panel TVs in sizes above 37 inches.Why is Panasonic betting on lar

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