barcode using vb.net Strategic Supply Chain Management in Software

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less! This occurred despite a commitment from the supplier that the price being paid by the network equipment company was the lowest offered to any customer. Violations of trust related to pricing are not news to Greg Frazier, executive vice president of Avnet Supply Chain Services (ASCS). He sees examples of failed collaboration all the time. ASCS is the services arm of Avnet Electronics Marketing, a global distributor of electronic components. Frazier s organization provides end-to-end supply chain services to original equipment manufacturers (OEMs), electronic manufacturing service (EMS) providers, and electronic component manufacturers. Frazier notes that the pricing problem may stem from the definition provided by the supplier, which may have promised the lowest price, but with fine print clarifying for a company exactly your size, serving your exact customer base. Notes Frazier, In many cases the idea that a best price exists is an illusion. The fact is that trust does get violated. Instead of using this as an excuse to avoid collaboration, set up your partnership so that you ll be protected. The concept of protecting a company from a confidentiality breach also has matured in the last few years. As more companies share forecasts, production levels, delivery schedules, pricing, and product data, security of information becomes a critical issue and no longer just an internal one. Your collaborative partnerships typically should include a contract or confidentiality agreement that provides a level of legal data protection that transcends the fuzzier concept of trust. While a structured contract can minimize risk, don t assume that it will provide a source of legal recourse should the relationship fail. Instead, use the contract as a tool for clarifying how the relationship will be governed and for specifying roles and responsibilities. Another concern is transmitting data. Although many technologies can encode data to arrive uninterrupted and uncompromised, the risk of technology failure is very real. As a result, more companies are using comprehensive, pricey security services to minimize this risk. These often require that partners follow certain security practices that specify password types, for instance, and limit access to networked servers and workstations. Although approaches vary, business and IT executives scrupulously analyze their partners security as well as their own. 13 To help companies manage information security risk, the International Organization for Standardization (ISO) created ISO/IEC 17799, a comprehensive set of controls that dictates best practices in 10 critical areas ranging from security policy to business continuity management. Some
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CHAPTER 4 Core Discipline 4: Build the Right Collaborative Model
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companies require that their collaboration partners adhere to ISO/IEC 17799. Because the standard is a framework for best practices in information security rather than a methodology, these companies generally use it to frame the specifics of what they require of their partners. These specifics may include such measures as disaster-recovery plans or the consistent use of antivirus protection within all network-connected devices. Eliminating all information-security risk is virtually impossible. Your company s supply chain is dynamic. New customers and suppliers are added constantly, and the level of collaboration in current relationships is always evolving. To set the right level of security, first identify the situations that would cause the greatest business disruption. This might be the unavailability of critical systems, loss of data integrity, or disruptions in ongoing communications with your partners. Then assess and put in place the steps or tools needed to minimize the odds of these events occurring.
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Use Technology to Support Your Collaborative Relationships
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Technology allows you to communicate with your supply chain partners. It breaks down barriers between companies, improves the flow of information, and converts data into useful information. Given the conceptual appeal of end-to-end supply chain management and the ready availability of technology to make it happen, then, why have companies been so slow to embrace real collaboration We think the answer is simple: They ve not been ready. At the peak of the Internet bubble, many software companies believed that if they installed the right supply chain applications and systems, sales would follow. But things didn t work out that way. Many companies expected to reap the promised benefits without doing the preliminary legwork the analysis, process redesign, and alignment with the new applications needed to gain the full functionality. Most early e-commerce systems addressed large, long-term collaboration issues such as extended forecasting, demand creation, and operations planning. Many of these were top-down initiatives driven by executives with equity positions in the companies whose technologies they were advocating. And many purveyors of systems and tools made promises they simply couldn t keep. At many companies their processes were too immature, the needed data weren t available, or they were unprepared for the new, collaborative ways of working that the new technologies theoretically could enable. Moreover, no single e-business standard for transactions and messaging emerged to rally a critical mass of users. Collaboration tools had to
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