Supply Chain Visibility 19
flat panel TV makers must be easy to do effects of longer distance in today’s global
business with. Retailers require accurate supply chain. In effect, the company
and timely information via methods that is able to use supply chain information
fit with their existing technology and to respond quickly and accurately to
business processes. A supply chain’s inevitable supply chain disruptions.
inability to support these requirements
means loss of market share in a shrinking Enhanced supply chain visibility: This
window of opportunity to get it back. allows the company to greatly improve
its ability to match supply and demand.
This is particularly important in a rapidly
Global Supply Chain growing market such as flat panel TVs
when both supply and demand can be
Logistics Visibility volatile. This enables the company to
protect and build market share in smaller
One of the top plasma TV manufacturers windows of opportunity.
sought to address these market pressures
Ryan Kraudel with an innovative logistics visibility Improved customer service and
High Tech and Electronics solution. To better match supply with loyalty: The company has improved
GXS (www.gxs.com) demand, the company required visibility customer service and loyalty by
of inbound raw material shipments from significantly enhancing the shipment
globally dispersed sourcing locations into information available to the company
Costco and Matalan are carrying discount its manufacturing facilities. To improve and its customers. The solution provides
brands that are increasingly competitive customer service levels and minimize “out- actionable information to make better
with higher priced models. In addition, of-stocks” in retail stores, the company business decisions. For example, if a
hardline retailers like Home Depot and also needed timely and accurate shipment shipment is delayed in a port on its way
Lowe’s and office suppliers such as information on finished products sent to a retailer, the company can update
Staples and Office Depot are carrying from the Asia-Pacific region to end-use the retailer and divert portions of another
flat panel TVs. Expanding existing and locations in North America and Europe. shipment to meet the retailer’s demand.
new retail channels add to the pressure However, the company did not have the The company has immediate plans
on flat panel TV makers to provide quality time, resources or expertise to undertake to expand the programme to provide
products in the right place at the right time this project on its own, so they chose to the same functionality and visibility to
in the right quantity. utilize an on-demand logistics visibility its Eastern European manufacturing
service that gives the company the ability facility, which has seen significant growth
These factors make time-to-market a to track and trace product shipments during the last few years. In addition,
critical differentiator in this industry. throughout its global supply chain. The the company is evaluating the solution
Increasingly, though, time-to-volume service provides timely and actionable for its other product lines, including
is more important than time-to-market, information on multimodal shipments of other consumer electronics, household
because the rapidly accelerating demand finished products from the Asia-Pacific appliances and industrial equipment.
requires not only delivering a product to region to end-use locations in North
market, but also delivering millions of units America and Europe, as well as inbound
of a product to market around the world. raw material shipments from sourcing Conclusion
Shipping millions of flat panel TVs requires locations around the world. The service
an agile, flexible, global supply chain to also provides a sophisticated logistics The globalization of supply and the
seize the market opportunity. Moving data validation engine with more than localization of demand have combined
quickly and efficiently (avoiding falling into 550 business rules, which enables data to rapidly shrink manufacturing product
the “dead” category in Mr Richardson’s normalization and correlation capabilities. lifecycles and windows of opportunity for
“the quick and the dead” segmentation) product success. This puts a premium
requires a global supply chain that can The company has realized significant on agile, transparent supply chains
respond to opportunities as well as business and supply chain benefits with that can quickly and effectively react to
mitigate risks, enabling resiliency when this solution including the following: demand variability. Enhancing supply
encountering unpredictable disruptions chain visibility can significantly contribute
and threats, and swiftness and accuracy Competitive Advantage: Mitigating to improving a company’s competitive
when market opportunities emerge. And the supply chain dilemma described position in today’s global economy by
last, but certainly not least, with customer above provides the company with a vital improving customer acquisition, service
service requirements at an all-time high, competitive advantage by limiting the and loyalty.
June 2007 Supply Chain Europe
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