1 / 10

Are you the weakest link in your supply chain

Introduction. SCM has become a complex discipline involvingSophisticated technologyCross functional business processesProcesses spanning across corporate boundariesSpecialised metricsCEOs should be fully involved in SCM . Picking the right leaders. Senior supply chain executives need Formal

stillman
Download Presentation

Are you the weakest link in your supply chain

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Are you the weakest link in your supply chain? Based on the article by Reuben E Slone, John T Mentzer and J Paul Dittmann Harvard Business Review, September 2007

    2. Introduction SCM has become a complex discipline involving Sophisticated technology Cross functional business processes Processes spanning across corporate boundaries Specialised metrics CEOs should be fully involved in SCM

    3. Picking the right leaders Senior supply chain executives need Formal education in SCM Significant prior experience Or both

    4. Benchmarking and metrics Appropriate metrics are needed for different areas – customer service, inventory, transportation, warehousing. External benchmarking is also important. Internally focused metrics tend to hide a lot. Avoid the trap of measuring only what can be measured easily.

    5. Setting incentives for supportive behaviour Establish reward and incentive programs to encourage employees to behave in ways that benefit the overall firm not just their own functions.

    6. Keep up with the technology/ trends Major developments have taken place in the past 10-15 years : New software RFID chips and systems Advanced bar codes Lean , Six sigma Yet incomplete, unintegrated information flows are common.

    7. Cross functional approach The CEO should thoroughly understand the interplay of cross functional and supply chain priorities. The role of each of the functions in driving results in cross functional areas must be carefully appreciated.

    8. Linking SCM with business planning SCM considerations should be core components of : Business planning Sales and marketing promotions Contract negotiations with customers Contract negotiations with partners

    9. Avoid short term thinking Short term thinking can lead to misguided tactical decisions that can have unintended consequences. Sales tactics should not be out of synch with supply chain objectives.

    10. Avoid short term thinking (Contd) For example, if discounts are offered to retailers at the end or each quarter to meet targets, little sales may happen in the first two months and most of it may get pushed to the third month. This results in avoidable demand fluctuations that can sometimes play havoc with the supply chain. Similarly if bonuses are paid to sales people for forecasting accuracy, they may try to bring forward or postpone sales, in both cases again creating avoidable demand fluctuations.

More Related