Global complexities challenge how IT managers handle distribution

Shifting business environments are causing a growing number of IT managers to rethink how they handle distribution management. Growing dependence on extended and diffuse partner networks, for instance is creating new operational complexities that have put a strain on traditional management practices, according to John Ferreira, the industrial manufacturing practice leader at Stamford, Conn-based Archstone Consulting.

IT managers are wrestling with how to integrate distribution management operations in new geographies with a wide range of systems - from ERP apps, to inventory management and supply chain management packages. Pulling together information from a variety of sources also carries with it security concerns, including access control.

So how can IT professionals respond to these new realities?

"It helps to focus new distribution management technology initiatives on specific areas and processes where you can drive near-term value," recommends Daniel Hauenstein, Program Director for Lotus Software at IBM. "This keeps you from getting bogged down in massive projects that won't yield results for another ten years."

The good news is that a number of tools are available to streamline development and simplify the management of the growing number of variables that must be tracked.

• SOA and distribution management. Organizations are developing supply chain infrastructure technologies that are based on the principles of services-oriented architectures (SOA). This is helping IT staffs to reuse existing software elements. This in turn reduces development costs and time to market metrics. By integrating existing infrastructure and applications, organizations can create business process accelerators that enable the rapid development and deployment of a broad spectrum of new processes in response to changing market conditions.
• Mashups and distribution management. This progeny of the Web 2.0 era is another time-saving integration tool that allows end users to create situational applications. This supports more effective distribution management processes by pulling together information from a variety of sources, without having to go through a full development cycle with IT or an external vendor. "One of our clients used the Mashup concept to create an effective shipment monitoring dashboard which combined internal with online information on logistics and products, including data from personal spreadsheets," says Hauenstein.
• Collaboration and distribution management. Collaborative tools add critical value by helping employees find the right information at the right time. Web portals are increasingly being used to deliver rich Web 2.0 experiences to increase adoption rates by the users. "Information is often best developed from interactions among employees rather than from searching for specific documents or data in isolation," says Hauenstein. "By facilitating these interactions, the organization more fully leverages the wealth of know-how and current, relevant information not available in databases or documents."

These new technology-enabled concepts have introduced an opportunity to creatively revisit how distribution management operations are designed and deployed.

To learn more about how experts at IBM can work with your organization to optimize key distribution management operations, please contact IBM.

• Source: Archstone Consulting study (PDF, 57KB)