Supply

Supply chain strategy focuses on identifying and quantifying supply chain improvements and assisting clients in transforming their operations, from suppliers to the ultimate customer, to enable real strategic change and competitive advantage. This service area of IBM formulates long term supply chain strategies encompassing infrastructure, assets, organization, processes and technology.

As a matter of fact their supply chain management offerings include a full range of strategy services, including:

• Value chain assessment and optimization

o Assesses current capabilities against an agreed upon target business model and structure.

o Optimizes the supply chain business model, including network, financial and tax consideration.

• Value chain transformation

o Results-oriented transformation focusing on improving customer service, product quality, cycle time, asset utilization, operational flexibility, and financial performance improvements.

• Operations performance improvement

o Their suite of offerings enables clients to enhance and stretch operational performance.

• Value chain system integration

o Integrate transactional systems and decision support tools for operational effectiveness and enablement of strategic decision.

The IBM Supply-chain Network Optimization Workbench (SNOW) helps companies streamline operations

According to information, for them this supply chain are not given very complex, so they have different problems that makes the process more difficult each time the number of variables grows and they can say that the inefficient asset utilization, seasonal spikes in demand, market fluctuations and complex international regulations are just a few of the problems plaguing manufacturers and third-party logistics companies.

Furthermore, too many supply-chain logistics networks are hampered by redundant and inefficient network facilities, high inventory-storage costs and low truck-load rates. An ever-changing marketplace — one frequented by mergers, acquisitions, expansions into new territories, offshore manufacturing initiatives and new product introductions — further muddles the delivery of goods. These challenges have prompted IBM Research and IBM Global Business Services (GBS) to take a fresh look at ways to optimize the supply chain.

Correspondingly a group of supply-chain researchers at the IBM China Research Lab have developed an advanced asset to better manage supply-chain logistics. It’s called the Supply-chain Network Optimization Workbench (SNOW). Built using these researchers’ expertise in network design, inventory optimization and transportation planning, SNOW is an integrated workbench providing end-to-end decision-making support. SNOW employs cutting-edge optimization, simulation and Geographic Information System technologies to streamline large supply-chain logistics networks.

For the purpose of taking into account real-life constraints, we can conclude that SNOW helps develop better supply chains in part by evaluating existing supply-chain strategies and performing tactical transportation analyses. In doing so, SNOW assists in determining facility locations and ways to optimize the supply portfolio. It helps decision makers evaluate supply chains in terms of global tax exposure, strategic inventory allocation and other factors. By taking into account all transportation, operation, regulatory and inventory variables, SNOW can help develop a virtually seamless end-to-end supply-chain solution.

Similarly, we found that SNOW is already proving itself in real-life scenarios. For example, on the research we found that one of the largest third-party logistics companies in China contracted with GBS to revamp its supply-chain networks. Together with, these networks include logistics management, transportation, warehouse management

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