Based on my experience, I strongly believe that CFOs seeking to transform to a globally integrated supply chain need to assess their companies' capabilities based on the six key competencies.
Charlotte, North Carolina (PRWEB) September 18, 2012
Research is strong in its findings that the supply chains of most companies are still linear and operate in silos, despite the warp-speed globalization of today’s economy. Yet, without communication across the supply chain and the leveraging of international trade agreements, even the most determined CFOs cannot transform from a traditional to a highly efficient, globally integrated supply chain, according to business transformation experts at J. Weiland, Slice & Co.
In terms of communications, companies that are still using a linear supply chain rely on sequential communication. This means that information is literally passed from one person to the next to the next. As a result, time is lost. Often, the information itself is lost or becomes outdated, much to the chagrin of customers. Consequently, the image of silos is reinforced and customer satisfaction is negatively impacted.
For CFOs seeking a solution, the best answer is a globally integrated supply chain where information is readily available to anyone within the supply chain. Important, this solution requires the establishment of six key competencies, including the leveraging of international trade agreements. Specifically, the company must have
- Globally integrated strategies with common tools, processes and roles;
- Collaboration supported by integrated data and information flow;
- Ability to leverage its assets globally;
- Capabilities that differentiate itself from its competitors;
- Ability to synchronize supply and demand;
- Ability to proactively manage risk through increased visibility and global partnerships.
Despite the highly charged global economic turmoil that continues to stifle business growth, one of the most effective ways of managing risk though global partnerships is international trade agreements. For example, the debit crisis in the United States and many European countries such as Greece, Spain, Italy and Ireland, amplify the negative impact on cash flow for companies engaged in international trade. Further the regulatory pressures of international trade agreements have increased costs, such as energy and labor.
In fact, not only does global trade spending incur additional trade compliance costs but past studies indicate that a significant percentage of shipments into the U.S. encounter fines and delays.
One key for CFOs, facing this 21st century conundrum, is a globally integrated supply chain combined with strong company to company partnerships. This will enable CFOs to minimize regulatory and labor costs, according to Nick Novis of Toronto, Ontario, Canada.
Nick Novis is a Global Consultant with J. Weiland, Slice & Co. He specializes in Supply Chain Management.
“More companies are focused on overseas expansion,” reported Nick Novis. “In fact, the most recent surveys of CFOs in Canada, United States, Mexico and Brazil indicate a doubling of the number of mid-market companies that either have already or will be expanding into the international markets.”
However, CFOs must aim at global expansion with a critical eye, if they expect to succeed, added Nick Novis.
“Based on my experience, I strongly believe that CFOs seeking to transform to a globally integrated supply chain need to assess their companies’ capabilities based on the six key competencies,” said Nick Novis. “Further, they must identify gaps, determine action plans to close the gaps and prioritize based on risk and opportunities.”
About J. Weiland, Slice & Co., LLC:
J. Weiland, Slice & Co., LLC, specializes in best practices in business transformation, targeting small to mid-market companies driven by volatile market forces to seek optimal business operations. Co-founder Jim Weiland and his team of experts are ex-IBM project executives with a diversity of worldwide management and consulting experience. As consultants, they help companies in need of Fortune 500 expertise but without the resources of a large corporation. The company is based in Charlotte, North Carolina, with consultants in Canada, Latin America and United States. Website is http://www.jweilandslice.com
Juliette Weiland, Principal
J. Weiland, Slice & Co., LLC
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