Company Primary
(Supply Chain) |
Strategy |
Operating Model |
Primary Focus of Operating Metrics |
Tailored Practices |
Toyota
(Production System) |
Increase share of world
automotive market;
global production
capabilities |
• Just-in-time manufacturing,
proximity to points of
• Toyota equity ownership
and financing of suppliers
(e.g., Keiretsu) |
Customer response
(e.g., product quality) |
- Quality control along the whole line
- TPS methods used throughout the chain
Continuous improvement, root-cause
analysis , and ‘fool-proof’ manufacturing processes
- Single Minute Die Changing techniques
- Kanban and supplier synchronization
- Collaboration among suppliers
|
IBM
(Servers) |
Diversified and valueadded
provider of networked
technology
solutions to businesses |
• Single face to customer
• Extensive pre-and post
sales support
• Build-to-order manufacturing |
Customer response (e.g.,
customer satisfaction,
sales force productivity) |
- Consolidated customer fulfillment process
- Launch ‘buffer’ manufacturing
Centralized procurement
- Consolidated and outsourced logistics
|
Cisco
(Catalyst 4000) |
Dominate the datacom
networking market; Be
an end-to-end solution
provider |
• Outsource physical chain
• Focus on software vis-à-vis
hardware
• Provide platform leadership
• Use M&A for acquiring
new technologies |
Efficiency (e.g., costs) |
- Standardized operational protocols to support assimilation of acquired companies
- Virtual manufacturing
Quoting customers (long lead times to reduce noise)
- Shift to pull system ( via Kanban)
|
Rolls Royce
(Aircraft Engines) |
Compete globally and
grow share and base;
Revenue growth
through increased services |
• Full-line ‘engineered-toorder’
engine factories
• Outsource lower valueadded
manufacturing
• Supplier risk revenue sharing |
• Full-line ‘engineered-toorder’
engine factories
• Outsource lower valueadded
manufacturing
• Supplier risk revenue sharing |
- Supplier councils and collaborative design
- Use of system integrators to foster collaboration
among suppliers
- Lean manufacturing-based Rolls-Royce Production System
|
ExxonMobil
(Downstream) |
Maintain scale postacquisition
via organic
growth; maintain multiple superior brands |
• Vertically-integrated company
vis-à-vis upstream exploration
and downstream
• Distribution/conversion from
the well-head to the pump |
Efficiency (e.g., cost/bbl) |
- Run large refinery operations leveraging optimization methods
- Integrate downstream operations
- Global decision making via global
organizations
|
Gillette |
Branding of innovative
consumer products |
• Product innovation
• Promote on-shelf availability |
Customer response
e.g., case fill rate and
on-time delivery) |
- Packaging postponement
- Cross-functional alignment
- Partner demand and supply planning
process alignment
|
Amazon |
Be the largest one-stop
shopping site on the
internet; offer customers
low prices, convenience,
and a wide selection
of merchandise |
• Internet retail with unit-level
picking and parcel fulfillment
• Multi-tier network of inventories
for distributed fulfillment
from partners to offer scale
and scope |
Customer response
(e.g., availability) |
- Drop ship fulfillment from multi-tier partner
network
- Advanced batched-order warehouse picking, packing and shipping strategies
- Customer lead-time ‘service-window’
management
|
Metro Group
(European Cash
and Carry) |
To expand to be the
process and technology
leader in emerging
countries; to consistently
provide fresh, high-quality
merchandise in
every country |
• Self-serve wholesale customers
pick up goods at
outlets
• Replenish outlets using a
two-tier DSD cross-docking
distribution network |
Efficiency (e.g., supply
chain costs) |
- LTL distribution network based on extensive
break-bulk, cross-docking, DSD and differentiated flow
- Local versus centralized sourcing (perishables versus non-perishables)
- Replicable, standardized distribution
network setup processes for entry into emerging countries.
|
Novartis |
Globally market a
broad portfolio of
patent-protected and
generic chronic-illness
products |
• Vertically-integrated supply chain that includes chemical
operations
• Production plants globally dispersed
| Customer response
(e.g., time-to-launch) |
- Development of production prior to a
drug’s approval
- Drug substance used as the decoupling
point for postponement and stored in
‘Turntable’ operations hub in Basel
- Centralized planning and scheduling
|