All successful Supply Chain Transformations have three elements in common – Alignment, Balance and Continual Improvement. Case study after case study has revealed that companies ignore these cardinal rules to their own peril. Supply Chain Transformations are again in fashion. In the late 90’s they were being driven by aggressive supply chain systems vendors; now they are driven by simplistic academic theorists.
Both groups have little, if any, real life experience in supply chain management. Leading Supply Chain Management academics today contend that every supply chain in the world should be same -Agile, Adaptable, and Aligned. We believe this is arrogant. It is like saying every woman in the world should wear size 7 dress – it sounds sexy, but is impractical.
For this reason, A B C of Supply Chain Transformations is crucial. This means Alignment (between business strategy and supply chain strategy), Balance (between competing supply chain alternatives), and Continual improvement. The first two are a matter of getting the supply chain strategy right, and the last is a matter of tactical short term improvements on on-going basis.
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