Supply Chain Management Implementation

Cross-group implementation

The objective of a cross-group implementation is to plan, control and record business processes, starting with the staff in the individual divisions, and then across the divisions and business units and finally across the group. The step-like structure of a cross-group implementation is illustrated and described in the graphic below.

cross company implementation

please click to enlarge

Steps involved in a cross-group implementation

In the first step, just the functional or divisional planning steps are defined. The individual divisions analyse and plan their processes independently of each other.

 

Step two extends the planning to cross-divisional/functional processes by connecting sales, production and distribution in a cross-divisional process such as the release of a product.

 

In the third step, planning across all business units or with customers and suppliers of step-one planning can be conducted. Shared processes from different business units are connected here. For example, a semi finished product may be used for the procurement of two different final products, or two different distribution channels may offer the same product to different customer segments.

 

Cross-group planning as shown in step four is the objective of ideal supply chain management. However, this is not yet achieved in any company. The global supply chain network can be seen as a virtual marketplace where competing suppliers offer their materials and the buyer is able to choose between different procurement alternatives. This leads to cross-group planning, global collaboration and optimization of business relationships.

 

News

German E3 magazine

Interview: "Don't leave it to the accountants"

 

Global Connect Award

IM&C nominated in the category "Hidden Champion".


Success-Story

TRW Automotive GmbH:
Transparency in Global Value Chains (German)



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