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Beyond 4P – Integrated Supply Chain Management

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Beyond 4P – Integrated Supply Chain Management

ISN’T IT TIME TO LOOK AT YOUR COMPANY’S NETWORK AND SUPPLY CHAIN WITH A NEW EYE TO TAKE IT FROM A FUNCTION TO AN ENABLER, FROM GOOD TO GREAT, FROM ORDINARY TO EXTRA-ORDINARY.

EXTRA-ORDINARY Supply Chain Management

  • Focused on value towards the strategic goals of your company.
  • Flexible and supple.
  • Sustainable in the long term – for your company, and other key stakeholders.
  • Outcomes oriented.
  • No con icts of interest.
  • Equal partner in the corporate results.
  • Balanced teams of best talent – internal and external talent deployed in the most e ffective manner.
  • Challenging most constraints – inherent, structural, systemic and executional – to create the best outcomes and implement them

ORDINARY Supply Chain Management

  • Focused on minimum cost with scant attention to the value towards the strategic goals.
  • Rigid and formulaic.
  • Short term focused – particularly in procurement practices.
  • Process or systems oriented.
  • Frequent con icts of interest, especially for logistics service providers acting as lead logistics providers.
  • Emphasis on internal personnel deployment, irrespective of the results.
  • Respectful of the most constraints – inherent, structural, systemic and executional – to accept sub-optimal outcomes.

Five critical problems in Strategy Execution GLOBAL RESEARCH FINDS FIVE CRITICAL PROBLEMS IN EXECUTION OF STRATEGIES Following are the abridged findings from a recent global research:

1. Not focusing on core competence Supply Chain Management

Most companies are good at one or two things. Whether it is mass production of chemicals or pharmaceutical research, or running airlines operations, companies know where they are really better than any other entity on earth. However, for several reasons most companies feel compelled to do far too many other activities that do not form their core competence. They do this despite the availability of third party service providers to take care of these noncore services. As a result they dilute their effectiveness, profitability and competitive position in the market.

2. Confusion from too many measures

Most companies rightly measure what they want to manage. However, in this quest to manage by numbers, companies have gone overboard by having far too many measurements that are not knitted tightly into a hierarchy of a measurement system. The resulting complexity leads to far too many managers focusing on the wrong measures or using far too many measurements for decision making.

3. Not engaging the right ‘experts’ at the right time

Companies frequently wait till too late before engaging outside ‘experts’. As a result, they suboptimise the results of their strategies and do not reap the full rewards of their strengths, capabilities and efforts. It is now commonly accepted wisdom that those executives that form teams of internal and external experts at the right time win the corporate game.

4. Strategic obstinacy and corporate hubris

Often companies take short cuts in their quest for meeting quarterly profitability targets. Some of these short cuts go against the strategic imperatives. The creative tension between short term profitability and the long term sustainability is frequently skewed towards short term results, thus sub-optimising long term results.

5. Not fully appreciating the power of supply chains

Supply Chain Management is still seen as a functional expertise played out at a tactical level outside the board-rooms. Only those executives who fully understand the strategic powers of supply chains deploy it effectively using all the internal and external resources in a collaborative manner – reaping immense rewards in terms of profitability and sustainable competitive advantage.

Action Now Supply Chain Management

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Copyright - These concepts, frameworks and ideas are copyright of GLOBAL SUPPLY CHAIN GROUP from the time of their creation. Do NOT copy these without permission and proper attribution.

Notes:

1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.

2. The date shown above the article refers to the day when this article was updated. This blog post or article may have been written anytime prior to that date.

3. All anecdotes are based on true stories to highlight the key points of the article - some details are changed to protect identification of the parties involved.

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Table of Contents

ABOUT THE PRINCIPAL AUTHOR

Today, Vivek and his partners are among 20-30 people on the planet earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek's journey:

  • Started in 1983 as a merchant navy cadet at 18 years age, worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.
  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in supply chain – against all odds, sought out the co-inventor of supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities and libraries worldwide.

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WHAT OTHERS ARE SAYING

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OUR CLIENTS

Our Clients come from a variety of industries – yet they have a common element. They rarely rest on their laurels, and are always looking to do better.

OUR PROJECTS - EFFECTIVE TRANSFORMATIONS

In the last 20 years we have completed more than 500 projects. Click below to see a sample of our projects.

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5.0
5/5

THE 5-STAR BUSINESS NETWORK

If you are deeply passionate about the world of business and supply chain networks as I am, and enjoy digging answers to critical questions that will help build and steer your business with wisdom, then join me. This book is a journey of exploration through the world of business networks that run along the veins of today’s commercial world.

4.3
4.3/5

OUTPERFORM OUTSOURCE OUTPROFIT

The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level. Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can google the Fox Meyer saga from the 90s and see for yourself.

4.3
4.3/5

UNCHAIN YOUR CORPORATION

Businesses Are Chained By Unseen Chains. If You Are Looking For Ways To “Unchain Your Corporation” A Successful Business Transformation Is Required.

Successful Business Transformations Are Difficult, Yet Rewarding.

Business Transformation Is Fast Becoming A Question Of Survival In The Modern Globalised Era.

Modern Supply Chains Integrate Businesses And Economies Faster By Systematic Information Sharing From Internal And External Sources.

Companies Can Multiply Profits By Progressively Ramping Up Cohesion And Collaboration Of All Moving Parts In B2B Network To Achieve Tighter Integration.

4.3
4.3/5

GREEN SUPPLY CHAIN – AN ACTION MANIFESTO

It is generally accepted that environmental consciousness is now changing to environmental proactiveness as organizations are discovering that it makes good commercial sense.

Boards are asking the management to review their policies related to environmental norms, not only to bolster their corporate social responsibility aims, but also because consumers are asking for greener supply chains

It is also widely agreed that consumers will increasingly prefer to buy more and even pay more for products or services provided in an environmentally sound manner.

FOR SENIOR EXECUTIVES AND DIRECTORS

YOUR HIGHEST VALUE ADDED IN YOUR COMPANY

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