Diageo recently discovered its supply chain management strategies were not taking full advantage of the information and data streams available, and has since planned to revise its practices to enhance its alignment with its 21 key markets. In refocusing its supply chain management technology and usage on segmental information use and reporting activity, the company hopes to reduce responsibility on each supply chain branch, while improving overall oversight and visibility. With the improvements, Diageo hopes its supply chain technology will play a more integral role in how the company plans to enter new markets faster and more efficiently.
The company plans to reorganize its global supply chain reporting practices and overall visibility, starting with an initial review of spending to identify opportunities for efficiency-driven cuts. Once the obvious cuts have been made, the company plans to implement more strategic use of supply chain management solution to improve reporting accuracy and speed of data acquisition. Once regional supply chains are able to be monitored by centralized decision makers, the company expects to enjoy millions in saved spending annually within the first three years.
One way Diageo plans to simplify oversight of regional supply chains and report on performance more accurately is by changing management responsibilities of geographic segments. Starting in June, the company's reporting practices will be segmented into four geographic categories and one corporate report to follow related market trends more closely and implement changes in a cost-efficient manner. Understanding what regions and markets are closely related makes it easier for companies to adjust practices in these locations at once to improve performance, rather than having to piece together supply chain reports on each country.
Many global supply chains are operating on a system similar to Diageo's that may either be underutilized or underperforming based on the needs of the enterprise looking to expand internationally. When technology is optimized to improve supply chain visibility, business leaders enjoy increased access and insight into operations throughout the company, rather than relying on inconsistent reporting and measurements from regional managers.
One option for enterprises looking to improve supply chain management and performance is the IBM Sterling Supply Chain Visibility solution, which helps companies make changes and advancements across multichannel selling, order management, warehouse operations and transportation obligations. Decision makers can enjoy a personalized, geographical dashboard to monitor performance and communications across processes and locations. The data sharing and reporting features can be integrated with partner businesses as well, including carriers and suppliers. The detailed reports on transactions and logistics allow enterprises to identify key metrics and improve management when performance declines. Enterprise applications not only connect internal operations but also create communication portals with suppliers, customers, carriers, forwarders and other partners from the dashboard. The IBM software includes:
- Business process modeling to configure strategies with partners
- Key performance metrics to set thresholds, expectation levels and improvement opportunities
- Geographical dashboard features for personalized, real-time tracking capabilities
- Custom user alerts for notifications of delays or errors
- Configurable business rules so managers can deploy unique management practices while working under overarching compliance demands
- Integration capabilities to link carriers, suppliers, resellers and trading partners with real-time information to enhance faster decision making
Looking at supply chain operations in the big picture makes it easier for decision makers to find areas of weakness or growth potential and make necessary adjustments moving forward. At each location, goals are specific and demands are narrow. When dealing with an entire supply chain, decisions must be supported with extensive research and visibility to see how small choices impact overall performance.