Extended-Enterprise Supply-Chain Management at IBM Personal Systems Group and Other Divisions

Grace Lin, Markus Ettl, Steve Buckley, Sugato Bagchi, David D. Yao, Bret L. Naccarato, Rob Allan, Kerry Kim and Lisa Koenig
Additional contact information
Grace Lin: IBM T. J. Watson Research Center, Yorktown Heights, New York 10598
Markus Ettl: IBM T. J. Watson Research Center, Yorktown Heights, New York 10598
Steve Buckley: IBM T. J. Watson Research Center, Yorktown Heights, New York 10598
Sugato Bagchi: IBM T. J. Watson Research Center, Yorktown Heights, New York 10598
David D. Yao: Columbia University, New York, New York 10027
Bret L. Naccarato: IBM Printing Systems Company, Endicott, New York 13760
Rob Allan: IBM Personal Systems Group, Research Triangle Park, North Carolina 27709
Kerry Kim: IBM Personal Systems Group, Research Triangle Park, North Carolina 27709
Lisa Koenig: IBM Personal Systems Group, Research Triangle Park, North Carolina 27709

Interfaces, 2000, vol. 30, issue 1, 7-25

Abstract: In 1994, IBM began to reengineer its global supply chain. It wanted to achieve quick responsiveness to customers with minimal inventory. To support this effort, we developed an extended-enterprise supply-chain analysis tool, the Asset Management Tool (AMT). AMT integrates graphical process modeling, analytical performance optimization, simulation, activity-based costing, and enterprise database connectivity into a system that allows quantitative analysis of extended supply chains. IBM has used AMT to study such issues as inventory budgets, turnover objectives, customer-service targets, and new-product introductions. We have implemented it at a number of IBM business units and their channel partners. AMT benefits include over $750 million in material costs and price-protection expenses saved in 1998.

Keywords: INVENTORY/PRODUCTION-APPLICATIONS; INDUSTRIES-COMPUTERS; MANUFACTURING-SUPPLY CHAIN MANAGEMENT (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (13)

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