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Author
Published
March, 2005
Summary
Based on Groenewout’s extensive experience in the field op Supply Chains optimization we advocate the idea that only effective supply chain optimization can be reached if all three aspects of “physical distribution structure”, “supply chain organization” and “Business Processes & IT” are covered during the implementation process. Too often companies regard supply chain optimization as just a process of centralizing or relocation of manufacturing facilities and warehouses. Although this physical supply chain structure lays the foundation, true optimization can only be reached by optimizing the supply chain organization & business processes / IT. Centralization of physical stock can only result in lower inventory levels if it is accompanied by central inventory management procedures and a full European supply chain transparency. Groenewout provides two business cases through which the relations and critical success factors for true supply chain optimization are illustrated.
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