Editor's note: Missed our SOA in Action Virtual Conference? Replay
sessions on demand here.
Revenue Down, Demand Uncertain? BPM Can Help you Cut Costs.
Competing on the basis of your supply chain performance has become more important
than ever in this tough economy. With revenues down and demand uncertain, where
do you cut costs? If your company isn't the biggest in your market or the lowest
cost provider or the first to introduce new products, what kind of results can
you expect to achieve with supply chain improvements?
Four strategies can work for the rest of us:
1. Stop obsessing over Six Sigma
2. Forget about achieving the "perfect order"
3. Pay your suppliers better
4. Don't talk to customers
Stop obsessing over Six Sigma.
Leading companies have come to realize that business process innovation and
improvement -- not just new products or services -- can be major sources of
competitive advantage. Companies that have adopted this mindset employ a more
disciplined approach to process management. But it's important not to obsess
over the myriad methodology choices out there and instead focus more on where
you apply the methodology. Whatever your company has chosen to achieve and sustain
operational excellence, the most important thing to do in today's economy is
to leverage that chosen process lifecycle methodology to focus on customer-visible
process improvements.
It's time to move beyond optimizing individual processes to the nth degree
and emphasize improvements that drive through your extended supply chain to
your customer's customer.
Identify those business processes that matter most -- and for manufacturers,
distributors and retailers, surely the customer-facing supply chain processes
would count among them, even if you do outsource some of them -- and then digitize
those processes. Business Process Management (BPM) is the leading means for
accomplishing this, as it ties together all aspects of a process both from a
descriptive and execution perspective, and from a line of business and IT perspective.
Don't just digitize those customer-facing processes to improve how work moves
through them, but consider capabilities that also improve how that work gets
done. Improving process with speed alone can only help you make the same mistakes
faster, and forcing an unfamiliar, non-intuitive user interface on staff can
hurt productivity more than it helps. Whether your goals are to comply with
complex business rules for customer disputes or to gain faster access to customer
correspondence for a "single version of the truth," people are your
organization's most important asset to meet those goals. Use tools that can
make your extended supply chain process work for the people, not the other way
around. Think of how much faster your new and improved process will be adopted,
whatever methodology you've chosen, and how often it will be adhered to, if
it actually helps your people get their work done.
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