How to transform supply chain...

Filed in archive Point of view on April 10, 2007

I'm a member of several supply chain forums here and there and well..., I have to confess that, so far I have benefited a lot from other experts' point of views in such forums.

Recently I read a discussion on supply chain transformation. The question was simple: In your experience, what is the best way of achieving supply chain transformation that worked for your organization?

Several people posted their answers to this question but among them I like this one which is from Christopher Hood, Lean Enterprise Manager at rockwell automation. It's simple and straight forward:

From first-hand experience, four things:
1) Strong operating leadership that defines metrics, holds operating reviews and drives continuous improvement. Lean principles easily take root in this environment to accelerate & sustain gains.
2) Excellence in materials management. You must have people who know what they are doing. It is amazing how few do.
3) A very close relationship with Product Management to (a) create "late-point configuration" designs, (b) drive common sub-components and (c) generally improve the manufacturability of products.
4) A close partnership with Marketing to establish the relative customer preferences for variety, price and availability. If you can segment your customers by these preferences, you can make huge gains through product line rationalization or lead-time standardization. More importantly, it frames the Supply Chain design correctly as part of your competitive strategy.
Final comment: if you stink at #1 and #2 , you absolutely don't have any credibility to discuss #3 and #4 with your commercial peers.