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White Paper

Supply Chain Intelligence

An Evolution From Process Automation to Business Insight

Authors:

Alan Probert, director of strategic alliances for Business Objects. Daniel O’Regan, senior member of the Accenture Supply Chain Management Practice. Richard Horswill, managing director, In Logistics Limited.

Contributors:

. .12 Source Deliver . . . . . . . . . . . . . . . . . . . . . . . . . .15 Accenture and Business Objects • Supply Chain Intelligence i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 . . . . . . . . . . . . . . . . . . . . . .4 . . . . . . . . . . . . . . . . . . . . . . .6 Breadth: The KPI Radar Screen Depth: The Devil in the Details Real Money Means Real-Time . . . . . . . . . . . . . . . . . . . .9 . . . . . . .5 The Next Level: Extended Means Intelligent . . . . . . . . . . . . . . . .ii Beyond ERP: Driving Intelligence From Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 The Eternal Riddle: Two Beers or Four? The Foundation: SCM Process Automation e-Business: Opportunity and Challenge The Supply Chain Maturity Roadmap . . . . . . . . . . . .7 . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Transparency Demands Data Integrity A Catalyst for Organizational Transformation Analytic Applications for the Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Contents Executive Summary . . . . . . . . . . . . . .1 The Changing Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and execution at every link in the supply chain. and achieve competitive advantage.” declared Socrates. In this white paper. Supply chain intelligence complements the tactical execution of SCM with long-range strategic dimensions. ERP and SCM applications have laid the transactional foundation to facilitate this change. The next phase is about the Socratic ideal of examining the supply chain – of analyzing it. scheduling. drive revenue growth. The key to this is the analytic application – software designed expressly around supply chain processes including procurement. The bar is being raised. “is not worth living. manufacturing. Business Objects and Accenture explore this next frontier of supply chain intelligence and how organizations can continue to build on existing investments and best practices to deliver the supply chain performance required to succeed in the 21st century. from supply chain management to supply chain intelligence that will support and facilitate this change. and share information across and beyond the enterprise.Executive Summary “The unexamined life. Applications for enterprise resource planning (ERP) and supply chain management (SCM) have enabled organizations to automate and streamline planning.” If the ancient Greek philosopher were alive today and in charge of supply chain management for a Fortune 1000 company. Supply chain management certainly experienced a stunning transformation in the past decade. leading companies have achieved remarkable improvements in supply chain performance that not only bettered their bottom lines. In the years to come. analyze. build loyalty among customers and partners. but there is still some way to go before true supply chain excellence can be achieved. companies can reduce costs. integrate. and distribution. It is the key to achieving the extended supply chain that many envision. ii Accenture and Business Objects • Supply Chain Intelligence . but reshaped entire industries. but to compete. Supply chain intelligence is the convergence of supply chain management and business intelligence – the capability to access. but few if any have achieved – a near real-time. he might well introduce a twist into this venerable philosophical adage: The unexamined supply chain is not worth running… or at least it won’t be in a few years. and measuring the improvements realized through ERP and SCM applications to drive efficiencies in the supply chain. By applying rich analytics and standardized metrics to vast and complex supply chain data. e-business network that transcends a company’s boundaries to achieve precise synchronicity and profitable collaboration among thousands of moving parts and partners. It is an evolution in supply chain technology. With smart implementations. supply chain intelligence will become a prerequisite not just to win.

and partners. information is the lifeblood of the supply chain. It spans a multitude of interdependent functions. when managers relied on common sense. deliver. a purchasing manager would choose a supplier based on a limited amount of information. supply chain management encompasses supply and demand. Geography and the immaturity of international trade also limited choices – and therefore the amount of information a decision-maker faced. disastrous misinterpretation. suppliers. Even ten years ago. Assessing consumer preference was left to guesswork and. • Visibility: Instant access to information driving supply chain operations and performance. hundreds. customers. managers. data-driven network of inter-relationships among dozens. distribution across channels. Now. sequential links to get from point A to point Z. and a myriad of metrics associated with each function. and concerned with basic elements of cost and quality. Today’s supply chain is anything but simple. As defined by the Supply-Chain Council (SCC). dynamic. warehousing and inventory tracking. but an incredibly complex. • Flexibility: Information and resources to meet challenges and seize opportunities. as then. source. This is a misnomer with roots in an age long past. order entry and order management. and customers. sourcing raw materials and parts. and instincts to make multi-million dollar supply chain decisions crucial to the fortunes of their companies. not a “chain” at all. in literal terms. Figure 1 Supply chain flow/loops Entreprise Resource Planing Production – Fulfillment Warehouse management Material management Procurement Manufacturing Order management Distribution Inventory Sales Service Marketing Customer Accenture 2001-All Rights Reserved. often weeks old. The council distills these functions into a model of five basic management processes: plan. Supplier DATA Transportation Logistics GOODS Accenture and Business Objects • Supply Chain Intelligence 1 . and return. It is.Beyond ERP: Driving Intelligence From Data The Changing Supply Chain The very term supply chain suggests a linear process – a series of simple. The supply chain universe and its information was far smaller and more easily managed. • Agility: Ability to swiftly respond to changing market conditions. manufacturing and assembly. frequently. and delivery to customer. or thousands of suppliers. It puts a premium on characteristics that are being redefined by e-business: • Collaboration: Communication on timely information among supply chain analysts. make. experience.

the supply chain defies easy management. it is information that drives the supply chain. 2 Accenture and Business Objects • Supply Chain Intelligence . the Internet provides a source of information as rich as it is overwhelming – while at the same time requiring organizations to utilize this medium to build a collaborative e-business environment for partners and customers. the supply chain ends up with serious kinks. it is the profusion of information – globalized. Four people assume the roles of retailer. how is a real supply chain to operate efficiently in the dynamic ecosystem of e-business? More than ever. MIT’s spreadsheet analyses of thousands of “beer games” show uncanny patterns of misinterpretation and overreaction among the participants. Externally. This profusion of information is both internal and external to the enterprise. wholesaler. a patchwork proliferation of applications specific to and associated with the supply chain is generating data of unprecedented volume and complexity. ever-changing. Invariably. and inventory – by accurately assessing consumer demand. and beer factory boss. The objective for each is to maintain supply chain stability – optimized production. And more than ever. and frequently contradictory – that threatens to drive more than a few supply chains into the ground. delivery.The Eternal Riddle: Two Beers or Four? Even at its most fundamental level. If a simple theoretical supply chain problem cannot be mastered.” an exercise popularized at the Massachusetts Institute of Technology (MIT). fast-moving. The supply chain enterprise faces considerable difficulties in efficiently linking newer applications with legacy software that is crucial to business operations. distributor. The decision matrix is getting more complex and that makes the eternal riddle even more difficult. This phenomenon is reflected in the “beer game. Internally. dauntingly complex.

0. decision-making. research firm International Data Corp.” Business 2. and offered price cuts and incentives.The Foundation: Supply Chain Management Process Automation Companies have invested billions of dollars in ERP and SCM software in attempts to master the supply chain. streamline. The absence of an intelligent. it can exact severe penalties in business efficiency. In early 2001. legacy and back-office applications and e-business systems • User-friendly key performance indicator (KPI) dashboards that intuatively highlight areas for action Building supply chain intelligence is highly complementary to the many organizations that have invested in ERP and SCM applications.1 ERP and SCM applications serve ably to automate. decision-makers need the ability to monitor and measure KPIs from the swell of information within the organization. a manager can swiftly be confronted with an information-overload and make decisions that will impact business performance adversely. financial. a “Big Three” Detroit automaker had implemented standalone customer relationship management (CRM) and SCM applications. In one celebrated misadventure. and customer satisfaction.” the result of basing supply chain decisions on an archipelago of data stores. May 15. Such a fractured supply chain infrastructure poses more than a mere inconvenience. the supply chain overcompensated by increasing production of lime-green cars. predicted that worldwide SCM software expenditures would grow at a robust 46% compound annual growth rate. Without a set of KPIs that can be readily understood and acted upon.” Line56. The consolidation of data from disparate sources is important in avoiding “multiple version of the truth. August 2001. With the volume and complexity of data growing by the minute. When consumers began snapping up lime-green vehicles. deep analytics on cross-functional supply chain areas • Data integration from cross-functional supply chain areas. Accenture and Business Objects • Supply Chain Intelligence 3 . The new analytic capabilities that are being developed provide a much needed and new rich source of data from which to drive key business decisions in real-time to deliver competitive advantage in the market place. A supply chain intelligence system will typically use a data warehouse or data marts to integrate data from functional supply chain areas and related operational. The presentation of and accessibility of hands-on KPIs delivered by the analytic application will become as essential to the supply chain manager as indicators of airspeed. and e-business systems.2 1 “Supply Chain in the Spotlight. The company discovered that lime-green vehicles were selling poorly. 2 “Facing Up to CRM. 2001. and in turn help the automaker decide which models to manufacture. and spending on SCM applications shows no sign of slowing. altitude. to $20 billion by 2003. enterprise-wide view of the supply chain resulted in a multi-million dollar mistake.com. and fuel supply to the pilot of a 747. What supply chain intelligence seeks to do is build on this data expanse with advanced capabilities in three key areas: • Rich. and standardize processes within distinct functional units of the supply chain. The objective of the CRM solution was to track sales and buyer preferences.

“When to Share Supply Chain Secrets. with capabilities to analyze data for the best deals. Wal-Mart’s mastery of just-in-time systems propelled it to the top of the retail industry – and left rivals such as the now-defunct Montgomery Ward and F. 57 percent either had not begun or were just getting started with web-enabled collaborative supply chains. Woolworth Co. The pioneering build-to-order and just-in-time systems that Dell implemented in the mid-1990s practically eliminated inventories and associated costs.3 Some are further along the road of supply chain excellence. for instance. The successful e-business supply chain requires an environment that is both collaborative and transparent. Forrester Research discovered that as of 2001. well behind. By 2003.W. businesses are plunging full-speed into this new model of the collaborative e-business supply chain. Dell Computer. speed. 4 Accenture and Business Objects • Supply Chain Intelligence . however.” September 2001. and data accuracy unimaginable decades ago. revolutionized the personal computer industry by maximizing performance of its supply chain. and helped Dell achieve extraordinary levels of customer satisfaction. Suppliers and customers now expect instant access to data through a secure extranet. 3 The Forrester Report. Despite apprehensions over transparency. In a survey of 40 supply chain executives at $1 billion-plus companies. Otherwise. the partner is apt to do business with a competitor.e-Business: Opportunity and Challenge While the internet offers an unprecedented wealth of supply chain information it also demands of any e-business a degree of openness. Forrester found that 80 percent expected to have these efforts nearly or fully complete.

with the emergence of supply chain intelligence providing a powerful agent to reach even higher plateaus. The Supply Chain Continuum Across Alliance Partners Scope of Impact With Customers & Suppliers Web-Based Entrants sin gB e fi ne ts Between Business Functions In Within Business Activities a cre sin gC a b pa ilit ie In s. the rate of growth of that gap is alarmingly rapid. The majority resides on the lower tiers of what Accenture calls the Supply Chain Continuum. These tiers consist of four distinct stages on route to supply chain excellence: • Traditional: Supply chain and SCM practices are loosely structured. customers Traditional Optimization Step 1: Integrate functions of the existing supply chain Integration Collaboration Synchronization Relationships Along the Supply Chain Accenture and Business Objects • Supply Chain Intelligence 5 . It is clear that businesses that neglect to undertake a broad. Accenture’s research and systems-implementation field experience clearly shows that the gap between supply chain leaders and also-rans is widening. there are thousands of companies struggling simply to manage their supply chains against a rising tide of data. a cre eSynchronization Step 3: Virtually Synchronize the supply chain across players into one logic enterprise Collaborative Integrated Step 2: Improve collaboration and control with vendors. ill-defined. Figure 2 It is the provision of real time information and analytics that will drive synchronization and improve performance.The Supply Chain Maturity Roadmap For every Dell and Wal-Mart though. in virtually every industry. strategic effort to improve the performance of their supply chains stand to be blindsided by rivals that do. Moreover. and specific to functional and geographic units • Integrated: Internal supply chain processes and systems are structured and integrated across functional and geographic boundaries • Collaborative: A breakthrough level in which collaboration and control are extended to suppliers and partners over the web • eSynchronization: Internal and external supply chain processes and systems are dynamically driven over the web (see Figure 2) The stage of eSynchronization has not been reached by any company to any significant level. and changing economic conditions. Businesses that have exploited technology to improve supply chain performance have leapt substantially ahead of competitors. e-business competition.

Figure 3 Typical SCI architecture 6 Accenture and Business Objects • Supply Chain Intelligence . They take advantage of new analytic capabilities. often tailored to specific organization requirements that will drive best practice and performance for leading organizations.The Next Level: Extended Means Intelligent The road towards the eSynchronized supply chain requires integrated performance measurement able to weigh variables against one another. these tools will significantly reduce the time to create actionable business data and further compact both development and deployment cycles. and with external parties via an extranet. rather than technical features with a robust analytic platform that will provide hundreds of metrics. integrate. allowing organizations to achieve and realize significant value and return on investment within very short timescales. Analytic applications are engineered around business processes. The aggregation of data from separate but related applications. Intelligent cross-functional and inter-enterprise information management and analysis is required. This sort of integrated performance measurement will for example allow a supply chain manager to correlate component cost and quality against product return and warranty obligations. In simplifying what otherwise would be a complex analysis process. Applications that can support this level of analysis are far more than simple data warehouses or data marts that consolidate data. or manufacturing. This new breed of analytic applications for the supply chain take a step beyond BI tools by providing built-in functionality particular to supply chain processes such as procurement. logistics. and share disparate information across the enterprise. say manufacturing and product returns. will enable a balancing of variables and deliver insight into the best course of action. allowing organizations to access.

A defining characteristic to this supply chain intelligence infrastructure and analytic applications is their ability to provide both breadth and depth. For instance. equipment. accidents. intelligent decision-making. breakdown. The acceleration and intensification of supply chain processes and proliferation of data make it imperative that decision-makers be spared from wading through volumes of amorphous data to ascertain the facts and figures most crucial to operations. delivery rejection) Such a KPI interface is essential for fast. the vice president of supply chain operations will have access to a portal-like view of indicators that span the supply chain: • Component price fluctuations/availability from suppliers • Manufacturing capacity utilization • Logistics efficiency and costs by channel • Inventory levels.. labor) • Delivery lead-time trends • Anomalies (i.e. stock turns. Accenture and Business Objects • Supply Chain Intelligence 7 . the KPI interface is altered to report on logistics-specific data: • Capacity utilization of transport vehicles • Delivery efficiency (inbound/outbound) • Logistics costs (i.. latency • Returns to suppliers and from customers For a logistics manager. Breadth: The KPI Radar Screen At the highest level – that of breadth – a supply chain intelligence infrastructure will provide a snapshot view of KPIs determined by the executive or manager.e. fuel.

for example.At the same time. this KPI interface serves as a radar screen for anomalies. Further. faxes. enables a manufacturing operations VP to intelligently decide whether to boost production at a plant in the Far East. and landlines to maximize exposure in today’s fast-moving business environment. such disaster-prevention capabilities are indispensable. Figure 4 KPI Radar Screen 8 Accenture and Business Objects • Supply Chain Intelligence . trigger a notification to the decision-maker. To approach the ideal of the finely synchronized extended supply chain. including wireless phones and PDAs. this technology can also broadcast alerts through a variety of channels. once breached. An instantaneous alert of an equipment breakdown at a factory in Illinois. often with pre-defined thresholds that. emails.

Though infrequent. The size of the supply chain and the casual relationships among its components tend to magnify improvements (and degradations). In many ways. the potential enhancements are unexplored territory. even an incremental improvement or cost-savings can deliver big dividends – a little of a lot. and customer information. logistics. a purchasing manager at Acme Super-Widgets relies on a single manufacturer to supply circuit boards for his company’s products. Accenture and Business Objects • Supply Chain Intelligence 9 . however. mainly because of the absence of that advanced functionality. The key to realizing significant supply chain performance improvement lies not only in a snapshot of data. For example. they represent just the tip of the pyramid. The vast majority of companies do not engage in deep analytics on supply chain operations. The ideal supply chain infrastructure will be engineered to find the devil in the details by aggregating cross-functional and inter-enterprise data and exploiting it at the atomic level. By consolidating data from the disparate but interdependent functional areas of procurement. it is fair to say that the dividends from supply chain intelligence stand to be substantial. but in ability to examine the underlying detail from which the snapshot is derived. In view of the revenue-generation and cost-cutting opportunities identified through the use of business intelligence against financial. has historically suffered from sporadic manufacturing interruptions. manufacturing.Depth: The Devil in the Details As important as KPIs are to intelligently managing a supply chain. and customer service. is still a lot. the supply chain intelligence system enables Acme decision-makers to analyze the issue from multiple perspectives: • What is the cost differential between circuit boards from our supplier and its competitors? • What are the relative component and product quality implications? • What costs have we incurred as a result of our supplier’s manufacturing interruptions? • What consequences have resulted in terms of customer satisfaction? • What are the historical trends in interruptions from our supplier? In a sizable supply chain. sales. these interruptions have resulted in major and costly setbacks to Acme’s own manufacturing and delivery schedules. after all. The circuit boards are recognized to be of good quality and fairly priced. The supplier.

and passes it to order fulfillment and logistics to execute the transaction. as it rolled out Business Objects business intelligence software to support a supply chain intelligence extranet that would enable its customers to track and analyze shipments. customer satisfaction. where it is available immediately for access and analysis. This dividend of supply chain intelligence is frequently overlooked. one of the largest providers of transportation services in North America. Transparency requires that information be accurate. EAI takes a purchase order logged over the web by a customer. this approach leaves something to be desired. EAI serves as a hub that connects disparate systems and makes information available and actionable in real time.Real Money Means Real-Time A traditional rap against data warehousing and business intelligence has concerned latency of information. “e-Business Intelligence: Turning Information Into Knowledge Into Profit. 10 Accenture and Business Objects • Supply Chain Intelligence . and in turn. For maximum access and responsiveness to real-time supply chain information.4 The supply chain intelligence infrastructure provides a platform in which “dirty data” – such as contradictory customer contact or location data in separate applications – is reconciled.” November 2000. Such perils were recognized at Penske Logistics in Ohio. the data is routed to the supply chain intelligence data warehouse. This throughput-intensive extraction and loading process is frequently executed overnight. Data is extracted from applications and loaded into the warehouse periodically. Transparency Demands Data Integrity The transparency of the e-business supply chain can mean that flaws and glitches are exposed for the world to see. “You’re basically wearing your business on your sleeve. The integrity and accuracy of data made available to external parties heavily influences a company’s credibility. put it. EAI technology is in use at some large enterprises to accelerate and simplify purchase order processes. its prospects.” as Tom Nather. when user demand is low and bandwidth is high. For instance. a Penske senior systems analyst. siphons relevant data. 4 Bernard Liautaud. but is crucial to the transparency required by e-business. The intelligent supply chain can take advantage of maturing enterprise application integration (EAI) technology to accelerate data flows and decision-making capabilities. or over a weekend. At the same time.

Left to themselves. Through its “loose coupling” of interdependent systems. rather than a scattering of puddles. calcified hierarchies. It offers a communal reservoir of information. Supply chain intelligence provides a common ground for collaboration among units. supply chain intelligence is a powerful catalyst for dissolving organizational barriers. Properly driven by senior executives.A Catalyst for Organizational Transformation Another characteristic of supply chain intelligence is as an agent for organizational change. Accenture and Business Objects • Supply Chain Intelligence 11 . and territorial disputes. Half of the battle in supply chain performance improvement is not information. The ability to achieve collaboration among functional units is frequently inhibited by ingrained practices. but the structure and responsibilities of organizations and personnel in managing that information. the inclination of many managers naturally is towards functional performance. it can serve to reorient the focus and responsibilities of managers beyond isolated functional units to the supply chain as a whole. not enterprise performance.

Make. it is easy to see how supply chain analytic applications can start to make significant impacts on performance within and across organizations. Firmly established. Source. they customarily are built around a business concept or model. based explicitly around the balanced scorecard business performance measurement system outlined by business strategists Robert Kaplan and David Norton in the Harvard Business Journal in the mid-1990s. and Amazon. Anheuser-Busch. For the supply chain. The Supply-Chain Council’s 700-plus member organizations include leading businesses in diverse industries including Lockheed Martin. and implementing supply-chain improvement programs. positioning. standard terminology. Procter & Gamble. and best practices that can be used for evaluating. The following illustrates this using an example from the Source and Deliver elements of the supply chain operations reference (SCOR) model. Several applications are available today. Below is the framework Business Objects used in developing its supply chain intelligence software: Plan Assess supply resources Business planning Manage planning infrastructure Source Sourcing/materials acquisition Raw materials warehouse management Raw materials transportation Make Manufacture and testing Business planning Manage planning infrastructure Deliver Order management Finished goods warehouse management Finished goods transportation Return Return to supplier Return from customer Using this framework.com.Analytic Applications for the Supply Chain As analytic applications are designed to reflect industry best practices and standard metrics. Deliver. and Return (see below). the Supply-Chain Council offers a compelling proposition in its taxonomy of Plan. common metrics. automotive. benchmarks. to name a few. electronics. its view of the supply chain provides a common supply-chain framework. 12 Accenture and Business Objects • Supply Chain Intelligence . for instance. This framework serves as a unified view of supply chain operations and to synchronize among the interdependent parts applicable to business in any industry – consumer packaged goods.

• Joint service agreements that define required flexibility and performance. measure. In short. and availability) with a company’s own resources. and improve procurement processes. as defined by the council’s SCOR 5. provide prebuilt metrics to measure each attribute. supplier management. • Detailed component-level inventory planning based on supply and demand variability. Accenture and Business Objects • Supply Chain Intelligence 13 . and provide the capability for further exploration via ad hoc query. It should be geared for the informational needs of executives. For instance: • Electronic links to integrate supplier resource information (inventory. It should provide for examination of both linear and network flows of information and decision-making within the Source management process. using a supply chain intelligence analytic application to measure data and information on source elements would allow organizations to manage this specific part of the supply chain for improved performance focused on reliability. • Master production scheduling reflects management of capacity and/or supply constraints. a Source application should provide for monitoring and measurement by the five key determinants outlined by the Supply-Chain Council. and analysts in planning. It would also need to support best Source practices. Identify sources of supply Select supplier Schedule delivery Receive product Verify product Transfer product Authorize payment ➡➡➡➡➡➡➡ Included within a broad range of functionality. and warehousing. capacity utilization. • Distinct links to ensure that disruptions in material resources are visible and actionable. and be customizable to each user. Reliability Order accuracy Timely delivery Material quality Documentation Flexibility Expedite orders Change orders Change contracts Responsiveness Improve cycle times Shorten lead times Cost Acquisition costs Distribution costs Transportation costs Assets Optimize inventory turns Reduce stock holding Any analytic application should.Source An analytic application built around the Source component will enable both a high-level view of KPIs and exploration of granular data to manage. procurement. of course. and responsiveness. flexibility.0 reference model. managers.

source. Here again. including: • Real-time visibility into backlog. and inbound/outbound transport. • Electronic transfer of shipment information to finance unit. inventory positions. In conclusion. As with the Source application. customer credit history. • Dynamic carrier and route optimization processes. carrier. and analysts in logistics. warehousing. traffic lane. • Distinct communications link supporting continuous replenishment and vendor-managed inventory. managers. using a supply chain intelligence analytic application to measure standard metrics over time. Receive customer order Reserve inventory Plan & build loads Select carrier. shipments. customer service/order. route. 14 Accenture and Business Objects • Supply Chain Intelligence . • Consolidation of orders by customer. It ideally enables analysis of the logistics process with an eye to identification of inefficiencies and performance improvement. order entry. would encourage the continuous improvement of the deliver process. rate Execute transit Verify product delivery ➡➡➡➡➡➡➡ Invoicing The prebuilt metrics and capability for ad hoc query should be designed for integrated performance measurement across all aspects of the Deliver process. with the flexibility to perform ad hoc analysis. it should enable analysis of variables from both linear and network perspectives. standard metrics should be provided for monitoring and measurement – by the council’s five key determinants: Reliability Quality (non damaged goods) Fill rate Order accuracy Availability Flexibility % customer managed inventory % deliveries direct from supplier Responsiveness Reduce lead time On time delivery End of life inventory Cost Inventory days supply Delivery costs/sales revenue Installation costs Asset utilization Load capacity Stock turns Location utilization As with Source. the application should also account for best practices in the Deliver process as defined by the council.Deliver An analytic application for the Deliver component should be engineered to the informational needs of executives.

navigation. The supply chain is an enormously complex piece of machinery. Leading companies beginning to deploy supply chain intelligence systems are gaining a sizable lead.Conclusion To tweak the age-old Socratic adage: Is the examined supply chain worth running? The answer is an unqualified yes. and the gap between those leaders and the also-rans is rapidly widening. Analytics are the route to significant improvements in supply chain performance. and trouble-shooting technology required to explore the uncharted frontiers of supply chain intelligence. businesses have equipped this machinery with the working parts. Businesses embarking on the long odyssey to supply chain excellence have good reason to believe that we are only now beginning to witness the scope and degree of performance improvements that may be achieved through the intelligent exploitation of an unprecedented abundance of data. Accenture and Business Objects • Supply Chain Intelligence 15 . and fuel to needed run in the 21st century. The ability to monitor supply chain metrics in real-time and react instantly stands to deliver genuine business value and competitive advantage. oil. Through sizable investments in ERP/SCM systems. The next step is to equip it with the advanced maneuvering.

For the fiscal year ended August 31. Its home page is www. Strong relationships within this network of businesses extend Accenture's knowledge of emerging business models and products. enabling the company to provide its clients with the best possible tools.About Accenture Accenture is the world's leading management and technology services organization. The company has extensive experience in 18 industry groups in key business areas. business strategy. 2001. Through its network of businesses approach--in which the company enhances its consulting and outsourcing expertise through alliances.000 people in 47 countries. helping clients anticipate and gain value from business and technology change. technologies and capabilities. including customer relationship management.44 billion. 16 Accenture and Business Objects • Supply Chain Intelligence . supply chain management. technology and outsourcing. With more than 75. Accenture also leverages its affiliates and alliances to help drive innovative solutions. Accenture uses these resources to serve as a catalyst.accenture. affiliated companies and other capabilities – Accenture delivers innovations that help clients across all industries quickly realize their visions. Accenture generated net revenues of $11.com. Accenture can quickly mobilize its broad and deep global resources to accelerate results for clients.

build profitable customer relationships.About Business Objects Business Objects is the world’s leading provider of business intelligence (BI) solutions. and develop differentiated product offerings. Today. Business Objects pioneered the modern BI industry in 1990 by inventing a patented “semantic layer” that insulates users from the complexity of databases. It helps organizations improve operational efficiency. the industry's leading integrated business intelligence toolset and platform. creating and delivering a unique vision for enterprise analytic applications. Business Objects has more than 15. the company was first to focus on enterprise-scale BI deployments and today supports customers with more than 20. and share information internally with employees and externally with customers. and partners. It is included in the SBF 120 and IT CAC 50 French stock market indexes.com. In 1995. and BUSINESSOBJECTS™ ANALYTICS. The company’s products include BUSINESSOBJECTS™ 2000. In 2000.500 customers in over 80 countries. The company moved aggressively to the internet in 1997 by pioneering the market for BI extranets. Accenture and Business Objects • Supply Chain Intelligence 17 . Business intelligence lets organizations access. a market that it continues to lead today.000 users. Business Objects continues to innovate. the company delivered the industry's first interactive mobile BI solution. suppliers.businessobjects. The company's stock is publicly traded under the ticker symbols NASDAQ: BOBJ and Euronext Paris (Sicovam code 12074). an integrated suite of enterprise analytic applications. Business Objects can be reached at 408-953-6000 and http://www. analyze.

The Business Objects logo is a trademark of Business Objects SA in the United States and/or other countries. All rights reserved. or brand names mentioned herein.247. Copyright © 2002 Business Objects SA. Not responsible for errors or omissions. product. All other company. 18 Accenture and Business Objects • Supply Chain Intelligence . Specifications subject to change without notice.555.The Business Objects product and technology are protected by US patent numbers 5.403 and 6. may be the trademarks of their respective owners.008.

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