Beyond 4P – Integrated Supply Chain Management

Beyond 4P – Integrated Supply Chain Management

AUTHOR

chiefstaff

TIME TO READ

minutes 

UPDATED ON

July 27, 2020

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

  • 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

  • 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

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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

Email on david.ball@globalscgroup.com


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. 
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chiefstaff

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

  • What are the five flows of SCM?
  • Why are they important TO YOU?
  • How can you map, track, and optimise these flows to serve YOU?
  • What is the importance of difference between "Supply Chain" and "Value Chain"?
  • What are the stellar case studies of each of the five flows?

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