Final Ibm

IBM Governmental Programs

© 2003 IBM Corporation

Pursuing “On Demand” IBM Shakes Up its Supply Chain.

07/02/09

IBM Governmental Programs

© 2003 IBM Corporation

“ The integrated supply chain at IBM is an innovative, strategic business unit IBM at one point had 30 supply chain, one for each of its business units, with each considered a necessary cost of doing business. Today that delivers significant cost saving, competitive advantage and enterprise alignment ”

07/02/09

IBM Governmental Programs

© 2003 IBM Corporation

About IBM.

Case Facts.

Phases of ISC.

Issues related with the ISC.

Strategies followed.

Present scenario.

Future challenges.

07/02/09

AGENDA

IBM Governmental Programs

© 2003 IBM Corporation

It is ranked 14th in the Fortune 500 list of companies.

Business area – Computer technology and IT consultant.

Service hands in more then 170 countries.

Turnover of USD 103 bn & Profit of USD 12 bn in 08-09

One of the major Supply chain software consultant.

07/02/09

INTERNATIONAL BUSINESS MACHINE

IBM Governmental Programs

© 2003 IBM Corporation

Started its journey In 1896.

Supply chain transformation began at 1993.

Formation of ISC in Feb 2002 headed by Mr. Bob Moffat.

Responsible for USD $ 40 billion of IBM cost and expenses.

In 2002--96% of purchasing transaction became “hands -free”.

In 2002 IBM saved $5.3 bn representing 6.5% of its 2002 revenues.

Shipping 1 Billion kg of products annually.

Transformation credited with savings for IBM in excess of USD $ 20 in first

three years.

07/02/09

CASE FACTS

IBM Governmental Programs

© 2003 IBM Corporation

Integrated Supply Chain formed in 2001-2002.

Why ISC ?

-- Inefficient traditional supply chain approach.

-- Increasing customer expectations.

Goals of ISC

-- To maintain its position as world’s largest IT provider.

-- To correct company level customer service.

07/02/09

INTEGRATED SUPPLY CHAIN

IBM Governmental Programs

© 2003 IBM Corporation07/02/09

MAJOR ISSUES

IBM Governmental Programs

© 2003 IBM Corporation

Customer satisfaction & Shareholder Value. Competitive advantage. Superior end-to-end customer experience. Process Simplification. Aspiring for leadership in supply chain. Improving employee skills.

07/02/09

INITIAL PHASE OF ISC

…..Six principles that guided ISC

team.

IBM Governmental Programs

© 2003 IBM Corporation

LATER PHASE OF ISC

Strategies Followed Learn: 35000 sales executives.

Shop: Real time end-to-end visibility of products.

Make: Close alliance with suppliers.

Deliver: Any order sourced from any factory.

Outsourcing

07/02/09

IBM Governmental Programs

© 2003 IBM Corporation

RESULT OF ISC

07/02/09

IBM Governmental Programs

© 2003 IBM Corporation07/02/09

PRESENT SCENARIO

Doing business with environmentally responsible suppliers.

Recycling in the extended supply chain.

Encourages its suppliers to pursue ISO 14001 registration.

Environmental leadership in the supply chain.

Workforce Management Initiative : Hot Skill Index

IBM Governmental Programs

© 2003 IBM Corporation07/02/09

Future Challenges: Security in the Supply Chain

Pre 9/11 major concern was theft.

Post 9/11 concern is security and prevention of terrorism.

Security enhancements are needed.

Governments and industry must work together.

Society should not have to sacrifice the efficiencies that have been built into the system.

i.e., security and efficiency are mutually reinforcing.

Opportunities for enhanced trade efficiencies.

Harmonized and Transparent Customs Procedures,

Automation

Must ensure changes support further trade in IT

IBM Governmental Programs

© 2003 IBM Corporation07/02/09

QUESTIONS….

Will be answered

by…

Anoop Kumar Mishra.

Atul Kumar Allawadi.

Rinkesh Parmar.

Sandeep Taparia.

Savita Malik. ….Thank You