Accenture-NewBusinessModelsinSupplyChain.ppt

?Andersen Consulting 2000 New Business Models in Supply ChainHarry E. Salzberg Memorial ProgramSyracuse University April 6, 2001 Supply Chain capability continues to be the difference between eCommerce success and failure The Internet isnt the first commerce platform, but it certainly holds more potential than any that have come before it. That potential is particularly evident in supply chain management. How effectively organizations can integrate the Internet into their core supply chain strategy will in large measure determine their future business success. -- Goldman Sachs A truly integrated supply chain does more than reduce costs. It also creates value for the company, its supply chain partners, and its shareholders...The industry leaders have made one thing clear: The payoffs from successful supply chain integration can be handsome indeed. -- Hau L. Lee (Stanford University) Online supply-chain management will stay one of the hottest B2B technology fields…Companies are only now starting to figure out the efficiencies and cost savings they can realize with Web systems that allow buyers and sellers to access the same information online. -- Jupiter Research Agenda Agenda What is a business model, anyway? It’s an organization’s core logic for creating value What does it sell? To whom? Why do customers choose this company over others? How does the company communicate distinctively with customers? How does it price distinctively? Successful business models are driven by two key concepts – revenue and profitability Focusing on revenue/profitability oriented business models have significant implications for supply chain design Overall logistics costs Channel service levels Do it yourself Focus on getting stuff out the door Let’s look at the track record for new business models in supply chain, especially the “new economy” entrants Evolutionary Masters – constantly improving on proven designs New, New Entrants – web-enabled entrants seeking long-term