PIONEERING THOUGHT LEADERSHIP
From the start of supply chain management to the current evolutionary trend Global Supply Chain Group has always worked on the cutting edge of the Supply Chain universe. One of our senior partners – Dr. Wolfgang Partsch – is known as the father of modern supply chain management. He was part of the first team in the world to coin the phrase supply chain management, create the methodology and disseminate it for free around the world. Since then we have made big strides in using this powerful concept to streamline the commercial world – first within nations, then within regions, and now globally. The following five questions talk about our pioneering though leadership in more detail:
- What is so special about GCSG’s know-how?
From the very beginning in January 2000 GSCG has resolve to be one of the thought leaders in the arena of supply chains. When we started this company as an offshoot of a top-tier strategy consulting firm, with the same analytical rigour and scientific method applied to the field of supply chains – we were the only firm in the world applying top-tier consulting rigour to only supply chains. In 2001 I set a personal goal to be one of the top 5 thought leaders in the world of supply chain management. I set out on a global quest to go and meet the global thought leaders – people who were involved in creating supply chain management discipline and its early adoption - in Germany, in other parts of Europe and in the USA and work with them and learn from them. Each project was carefully chosen to build that cutting edge know-how and even now we work mostly with clients who want to remain far ahead of competition, rather than just follow what everyone else has already done.
- How does that benefit the customers?
Obviously applied knowledge is power to transform, power to create something much better than the status quo, and the power to leave competitors far behind. Our clients benefit from the wisdom that flows out of distillation of that knowledge as applied to their particular businesses and circumstances. They are able to create newer models of supply chains, faster. They are able to use these newer models more effectively to create far superior results. Finally, they are able to see, measure, calibrate and monitor the results in an on-going manner. It is all very scientific and tangible.
- Why is this unique?
To some extent everyone has some knowledge. The key question is whether that knowledge is fresh or outdated. Whether it suits the particulars of the case, or generic application of an oft-repeated methodology – which might only apply partially. We have moved beyond the era where 80% suitable answers were enough. Today’s solutions have to be 100% crafted to current needs of the customers. There is nothing more dangerous to profitability than outdated know-how. Our people continue to work on the cutting edge – both in the business world and in strategy consulting – to combine the best of the two and this is very unique capability.
- Can you give us an example?
Certainly, I will give you two examples, though there will be many more in the case studies and testimonials.
When a group of very influential businessmen approached us to start a multi-billion dollars oil tanker company from scratch in a very short time frame, it needed an immense amount of strategic, tactical and operational know-how to pull it off. In a market with severe oil tanker ships shortage, we had the network and strategic insights to understand which countries were moving from oil exporters to barely self-sufficiency in the next few years, so that we could approach them for their spare tanker fleet. This is at a time where the price of an average large tanker had shot up from around $50m to around $200m in 6 months period. Secondly, we created unique insights into what the customers of the oil tankers – the global oil giants – wanted from the tanker fleets. Those requirements were also changing dramatically beyond the traditional role of the tanker shipping. Finally, we had to create the operational expertise in the company. In fact I acted as an interim CEO of the company for a short period to embed the capability. I do not think any other consulting company on earth could have pulled this off at the cost we did this work – of course you can always throw resources at a problem till either the problem goes away or you run out of resources, but that is not our way to solve problems.
In another example, on the opposite side of the spectrum, in a mature market, our client was the market leader in a rapidly consolidating marketplace. There are hundreds of examples of these type of market places – especially in the mature economies – so the viewers can related to this example a lot more. The company was rapidly losing money despite more than 20 acquisitions in the last several years. Everyone was blaming the supply chain because of the customer complaints and high costs. We looked at the supply chains and worked out a plan to streamline a mish mash of 20 supply chains acquired over the last several years. The efficiency would yield tremendous profitability advantage. However, there was nothing unique about that work so far. When we looked strategically – the marketplace had changed tremendously. Their customers had resorted to strategic sourcing on global basis and the buying practices de-emphasised local participation. The users were expected to be a lot more pro-active in acquisition and use of the product. Our client’s supply chain was still organised to over-service their customers. This single insight led to complete re-organisation of the goals of the supply chain and perhaps saved the company from being an acquisition target of its competitors.
There are many more example of this kind where supply chain insights have led to strategic transformation of the entire businesses. Viewers can see the case studies or testimonials – or call for more examples relevant to their industry or business.
- Is some of this know-how available to the viewers now?
Yes, from time to time we produce strategic insights in report format for our clients and potential clients. We currently have a report titled 2011 Australia Boardroom Report – The 8 Critical Issues Facing Global Business Leaders, and Five Insights for Outstanding Success. If the viewers want to access this report, they can send an email to info@globalscgroup.com
