Supply Chain Management — just another shortlived management philosophy? The gains that have been realized when adopting Supply Chain Management (SCM) and Advanced Planning are impressive:
  • Hewlett-Packard cut deskjet printer supply costs by 25% with the help of inventory models analyzing the effect of different locations of inventories within its supply chain. This analysis convinced Hewlett-Packard to adopt a modular design and postponement for its deskjet printers (Lee and Billington, 1995).

  • Campbell Soup reduced retailer inventories on average by 66% while maintaining or increasing average fill rates by improving forecasts and introducing simple inventory management rules (Cachon and Fisher, 1998).

  • IBM applied its Asset Management Tool, consisting of analytical performance optimization and simulation, to its personal systems division, saving material costs and price-protection expenses of more than $750 million in 1998 (Lin et al., 2000).

  • BASF introduced vendor managed inventory with five key customers in its textile colours division. With the help of an Advanced Planning System it has been possible to raise the fill rate of its customer’s inventory to almost 100%. Customers profited from eliminating safety stocks while it allowed BASF to generate less costly transportation and production schedules (Grupp, 1998).


Supply Chain Supply Chain Management Fill Rate Global Supply Chain Advance Planning 
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  1. Forrester, J. W. (1958) Industrial dynamics: A major breakthrough for decision makers, Harvard Business Review, Vol. 36, No. 4, 37–66Google Scholar
  2. Cachon, G.; Fisher, M. (1998) Campbell Soup’s continuous replenishment program: Evaluation and enhanced inventory decision rules, in: Lee, H. L.; Ng, S. M. (Eds.) Global supply chain and technology management, POMS series in technology and operations management, Vol. 1, Miami, Florida, 130–140Google Scholar
  3. Lee, H. L.; Billington, C. (1995) The evolution of supply-chain-integration models in practice at Hewlett-Packard, Interfaces, Vol. 25, No. 5, 42–63CrossRefGoogle Scholar
  4. Lin, G.; Ettl, M.; Buckley, S.; Yao, D.D.; Naccarato, B.L.; Allan, R.; Kim, K.; Koenig, L. (2000) Extended-enterprise supply-chain management at IBM personal systems group and other divisions, Interfaces, Vol. 30, No. 1, 7–25CrossRefGoogle Scholar
  5. Grupp, K. (1998) Mit Supply Chain Management globale Transparenz in der Distribution, PPS Management, Vol. 3, No. 2, 50–52Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  • Hartmut Stadtler
    • 1
  1. 1.Institute of Business Administration, Department of Operations and Materials ManagementDarmstadt University of TechnologyDarmstadtGermany

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