Beyond 4P – Integrated Supply Chain Management

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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 EXTRAORDINARY.

  • 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
  • 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.

INTEGRATED SUPPLY CHAIN MANAGEMENT

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:

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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Vivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com 

Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.

Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.

Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.

Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.

More information on Vivek is available on www.linkedin.com/in/vivek  and more information on Global Supply Chain Group is available on www.globalscgroup.com

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