The Power of O3: Optimized Strategy, Planning and Execution
Year 2006 Report on Trends and Issues in Logistics and Transportation
Capgemini, Georgia Southern University, and the University of Tennessee, in partnership with Oracle and Intel, present the 15th Annual Report On Trends and Issues on Supply Chain, Logistics, and Transportation. This report builds on a 6-year effort to review the major drivers of supply chain excellence.
As early as 2000, Capgemini advocated the value of transforming the organization to a more adaptive, flexible entity. Never has the need been greater than in 2006 as the global supply chain pressures have created a set of business drivers and competitive requirements that severely stretch the logistics and supply chain operations capabilities of most enterprises. The challenges currently facing logistics, transportation, and supply chain managers such as fuel surcharges, lack of transportation capacity, increased variability in order-cash cycles, and on-time deliveries that declined for every mode in 2006, are to a large extent out of their control.
The findings of the 2006 study indicate that much work remains to be done to develop adaptive supply chains. The challenges require an examination of strategy and planning to optimize the firm’s efforts. Execution alone won’t accomplish the objective of maximizing effectiveness and efficiency in the supply chain. Optimizing strategy, planning and execution will enable firms to transform themselves from independent actors composed of independent parts and independent goals into collaborative parties in pursuit of a fully consumer demand driven supply chain.
