Applying Business Process Management to the Global Supply Chain
Today’s supply chain is much more complex than it was ten years ago given the monumental shift from domestic to global sourcing. Also with new regulations like Customs 10+2 that place accountability on the importer, there is a big push to control (or at least have visibility) to operations at origin. So , business process mapping today plays a key role to understand product flows, process hand-offs and informational triggers.
Some of the hot areas that I see with a specific application of BPM include:
* The order management process with contract manufacturers. BPM can be used to confirm POs with suppliers and automate the approve to ship process.
* The origin planning process with logistics providers to plan the inbound supply chain. BPM can coordinate factory loads and consolidation services as well as automating the routing guide and booking approval process.
* The Importer Security Filing process that can requires coordinated input from the Importer, Forwarder, Broker and Carrier.
* The shipment process where in-transit inventory is monitored. BPM can be used to alert on shipment status, escalate hot issues and coordinate hand-offs
* The entry process where a filing error has occurred. BPM can coordinate the resolution of an entry issue among the broker and import compliance team.
These processes can be tackled individually or linked to form an integrated inbound supply chain. Also, many companies have such a broad product portfolio that they effectively need to manage multiple supply chains, so the supply chain technology needs to be highly configurable
Date: May 15, 2009
Categories: Supply Chain Visibility