Information Sharing Essay

19917 Words Aug 20th, 2013 80 Pages
PART 5—LOOKING TO THE FUTURE

Chapter 16—SUPPLY CHAIN PROCESS INTEGRATION AND A LOOK TOWARDS THE FUTURE

For those for whom integration is not happening, the future is bleak and getting darker.[i]

There is a lot of value that is “trapped” between the processes trading partners use to transact business, and when companies work together, they can unlock that value and share its benefits.[ii]

LEARNING OBJECTIVES

After completing this chapter, you should be able to: • Discuss and compare internal and external process integration. • Discuss the requirements for achieving process integration. • Describe the barriers to internal and external process integration, and what can be done to overcome them.
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Q: How is operating a supply chain different when the Department of Defense is your major customer?
Noshirwani: We need to adapt to the changing customer first. The focus within DOD has shifted from products to capabilities. And, second, they have raised the awareness of mission assurance within the defense business generally and the missile defense business, in particular. Within Raytheon, Bill Swanson, our CEO, has said we are going to take mission assurance to the next level across all our businesses. Putting that together, the challenge we have is: How do you make our supply base aware of our new expectations; and, what do mission assurance and our new business strategy mean to us? That change forces us to look at the historical supply chain in a different set of paradigms.
Q: What was the shift of objectives?
Noshirwani: We went from operating traditional purchasing and supply chain organizations to what we today call an integrated supply chain. With that, we intend to link our engineering groups and our performance excellence groups with our supplier base as early as we can in the process when building relationships with our suppliers. We need our suppliers to be an extension of ourselves. The old routine, when dealing with our suppliers was focused on costs, quality, and schedule. Lack of performance in these categories generally provided a stressful exchange. That has changed. Now, it’s going to be more collaborative. We’ll be working together so

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