Nine truths for building a global supply chain
AMR Research gathered supply chain executives together for the Supply Chain Executive Conference and Supply Chain Peer Forum. The group discussed technology and structures for global supply chain organizations. Researchers found some patterns in how companies build their global supply chain organizations. Researchers also identified nine truths in building a global supply chain:
- Alignment happens through an outward focus. Building demand networks and reducing demand latency are vital.
- Processes are changing. As companies mature, companies must unlearn old processes and accept new processes to build an effective supply chain.
- An organization must be built. Companies must take internal responsibility for training and skill building.
- Design and modify supply chains. Companies must realize the supply chain is not one entity. There are many supply chains and there must be active design-and-modify strategies.
- Process definition allows agility. Effective supply chain response hinges on adaptively translating demand.
- Networks are essential. Systems and processes are needed to support demand, design and supply networks.
- Metrics are the glue. The metrics definitions are essential for alignment. Performance management systems are increasingly needed to align metrics that foster the desire supply chain response.
- It must be a total company effort. This requires a redesign of front office (sales and marketing) processes to transition from marketing to market driven.
- The supply chain is critical to support innovation and growth. Sustainable market growth cannot happen without embedding innovation in demand and supply processes.