Extended-Enterprise Supply-Chain Management at IBM Personal Systems Group and Other Divisions

Authors:
Grace Lin;Markus Ettl;Steve Buckley;Sugato Bagchi;David D. Yao;Bret L. Naccarato;Rob Allan;Kerry Kim;Lisa Koenig
Affiliations:
-;-;-;-;-;-;-;-;-
Venue:
Interfaces
Year:
2000

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Abstract

In 1994, IBM began to reengineer its global supply chain. It wanted to achieve quick responsiveness to customers with minimal inventory. To support this effort, we developed an extended-enterprise supply-chain analysis tool, the Asset Management Tool (AMT). AMT integrates graphical process modeling, analytical performance optimization, simulation, activity-based costing, and enterprise database connectivity into a system that allows quantitative analysis of extended supply chains. IBM has used AMT to study such issues as inventory budgets, turnover objectives, customer-service targets, and new-product introductions. We have implemented it at a number of IBM business units and their channel partners. AMT benefits include over $750 million in material costs and price-protection expenses saved in 1998.