Automotive parts distributors and manufacturers striving for operational excellence through supply chain technology can learn a trick or two from adventurers who have conquered the world's most treacherous mountains, according to Terry Ross, vice president of product development for Activant Solutions Inc.

Ross, who will present the opening address at this week's (August 2-4) Aftermarket eForum at the Hyatt Regency O'Hare in Chicago, likens the process of building an effective IT architecture to the challenge of planning and executing a difficult climb. "It seems hard because it is hard. There's no question it's difficult and often uncomfortable, but it's absolutely necessary given the competitive challenges facing this industry."

Ecommerceiq.com asked Ross, "What are the most important supply chain management issues any manufacturing company must address? And how does it impact their customers?"

"A fundamental question is how does a manufacturer reconcile dynamic, noisy, and unpredictable demand with supply activities that benefit from stability, predictability and control?", states Ross. "That is, how can a company be highly responsive to customer demand without allowing that to translate into disruptions in manufacturing and distribution? If a company is not very good at figuring that out, manufacturing and distribution is less efficient and effective. In the long run, that is bad for customers.

"This motivates a lot of effort on the part of manufacturers to try to remove dynamics, noise and unpredictability in demand. Better forecasting, closer relationships with customers, and improved communication all help, but they won't ever eliminate the problem. There will always be a need to be able to determine a measured response that strikes the right balance between operational control and customer demand."

And what about in regard to the integral issues for e-businesses in regard to customer online ordering, invoicing, purchasing and customer catalogs, to ensure success up the supply chain mountain?

The central issue here is making it extremely easy for the customer to do everything he needs to do, notes Ross. "After all, the customer is serving himself. Instead of having a well-trained and experienced order taker available to work with customers, the e-business is substituting an untrained, inexperienced self-serving customer. The computer system must be so easy to use that in effect the customer himself is instantly transformed into an expert customer service agent of the e-business. This should be the design goal for a customer portal at an e-business."

And what is in his opinion the most overlooked issue in supply chain management? "I think it is the degree of inherent complexity in supply chain operations and, as a consequence, the degree of sophistication required to manage a supply chain," declares Ross. "From a distance, it may not seem that complicated to make a product, move it to a distribution center, and subsequently deliver it to a customer. In fact, some very highly sophisticated mathematics underlies the most effective supply chain management tools.Companies that overlook or don’t address that complexity find themselves constantly fighting to control their operations.

"Like any serious climber, the aftermarket distributor needs a clear, frank understanding of the value and potential risks associated with every move. It's a complex process, but you should be able to easily map out a viable strategy by focusing on the activities, information flows and workflows that deliver the biggest bang for your buck. This strategy should then be used to better direct your efforts and capital--and your technology partner's activities--in meeting your competitive and operational needs," notes Ross. 

Aftermarket eForum is the only e-commerce conference dedicated to automotive aftermarket issues, and is presented by the Automotive Aftermarket Industries Association, Motor & Equipment Manufacturers Association, Specialty Equipment Market Association, and the Automotive Industries Association of Canada. Activant is a primary sponsor of the annual event.

Ross joined Activant from i2 Technologies, Dallas, Texas, in September 2003, has established a strong track record of more than 20 years in the development of innovative supply chain software solutions.