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, Lisa Koenig

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

77 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)7-25
JournalInterfaces
Volume30
Issue number1
DOIs
Publication statusPublished - Jan 2000
Externally publishedYes

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