Report

March 2003

Preparing For Adaptive Supply Networks

George Lawrie 		Most users have overspent on supply chain optimization software but have little to show for it. They need to first focus on organization and operations and then on technology to thrive in adaptive supply networks.
by George Lawrie with Matthew Nordan, Thaís Lapolla

INTERVIEWS
  • 68% of supply chain optimization projects overspent.
  • Users spend 16.9 million -- 74% more than budgeted.
ANALYSIS
  • Instead of trying to eliminate uncertainty, supply chain managers must learn to manage uncertainty better.
  • Enterprises must focus on operational flexibility before investing in more technology.
WHAT IT MEANS
  • i2's investors will sponsor a professional services merger.
  • Supply chain bureaucrats stop calling the shots.
 
Figures & Data
  • Figure 1.  Firms Overspend On Supply Chain Optimization And Get Weak Results
  • Figure 2.  Today’s Supply Chains Versus Tomorrow’s Adaptive Supply Networks
  • Figure 3.  How Manufacturers And Distributors Can Become Adaptive
  • Figure 4.  Operating Adaptively: The Drum Buffer Rope Methodology
  • Figure 5.  Sample Vendors With Sense And Respond Expertise
   
RELATED MATERIAL 
  • Vendors And Service Providers Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • Electronic kanban.
  • What is a supply chain for?
  • "We completely disagree with your premise."
  • Zero-tolerance BI.

 

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