If there is a Holy Grail in supply chain management, this is it: a system that allows all parts of the chain—manufacturers, suppliers, distributors, partners, and customers—to share information as needed. Vendors promised a total integration years ago, but operations chiefs in the field know that solutions can be expensive, nightmarish to implement, and not always exact.
But in fact, the authors say, such systems can now come to fruition by using the Internet and other communication tools to conduct supply chain activities. Enter the "mega-portal," described by the authors as "an online, Internet-based hub of information and services accessible through a variety of devices (a personal computer, cell phone, or handheld PDA), capable of providing personalized content and views to help managers better run their enterprise."
The mega-portal provides e-supply in real-time by integrating and linking all transactions, while allowing for open connections to all pieces of the supply network from customer orders to the delivery of the finished product.
Building a mega-portal, of course, is no simple matter. For many, it's a challenge just to get these integrated systems up and running successfully, not to mention the added need for human resources to manage it. Putting a mega-portal to work in your organization requires that diverse departments work together in the layering of functions that contribute to the supply-chain bottom line. In short, accounting needs to talk to production, which needs to be in contact with sales, which needs to coordinate with shipping, and so on. No one is left out once you are connected via the mega-portal.
But the results are worth the effort, as each piece of the chain reduces operating costs, headcounts, and cycle times, producing increased revenue and customer retention.
Authors Boyson, Harrington, and Corsi, professors at the University of Maryland Business School, present numerous case studies on this topic from both the private and public sectors. In fact, a large portion of their research was conducted at the U.S. Department of Defense, where they examined a logistical division in the U.S. Air Force to support the idea that effective procurement can occur within a common portal interface.—S. J. Johnston