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? 2010 Wiley * SCM Across the Organization SCM changes the way companies do business. Accounting shares SCM benefits due to inventory level decreases Marketing benefits by improved customer service levels Information systems are critical for information sharing through PSO data, EDI, RFID, the Internet, intranet, and extranets Purchasing is responsible for sourcing materials Operations use timely demand information to more effectively plan production schedules ? 2010 Wiley * Case in Supply Chain Network Design: Procter Gamble In the 1990s, PG was facing competitive pressure primarily with regard to overall cost. Excess capacity at plants, largely due to successful quality initiatives in the 80s, and reduced distribution requirements, largely due to redesigned “compactified” products, presented PG with an opportunity to re-design their supply chain. Comprised of over 50 product categories, over 60 plants, 15 distribution centers, and over 1000 customers, the redesign was a major project involving over 500 people organized in more than 30 teams. Analysis of this supply chain led to the formulation of a large-scale mixed integer linear program, An important feature of the DSS developed around this model was the visualization capability afforded by integrating a Geographic Information System (GIS) into the user interface. The GIS gave managers a good grip on solutions generated by the DSS under various scenarios, such as that of closing specific plants. The documented pre-tax savings of roughly $200 million annually is proof of the pudding indeed in the case of this DSS. Sources: Blending OR/MS, Judgment, and GIS: Restructuring PGs Supply Chain by Jeffrey Camm et al. ? 2010 Wiley * 3M Supply Chain Design/magazine/content/07_24/b4038410.htm?chan=search EXPANSION AND CONTRACTION? Buckley plans to spend $1.5 billion on 18 new plants or major expansions around the world, including 11 outside the U.S., with four new factories in China alone. The thinking is that the new