Supply chains can “cut across the grain”
Logistics Management is carrying an article here summarizing Carly Fiorina’s (formerly CEO of Hewlett Packard) opening keynote address at the Council of Supply Chain Management’s (CSCMP) Annual Conference.
I was especially intrigued by the following from the article: “The supply chain [improvements] were important in the ability to support customers, grow the company, and they became a unique differentiator,” said Fiorina. “Supply chains cut across the grain of how organizations are put together, whether it is a modern corporation or a government agency. And they all have an organization hierarchy and chain of command, which supply chains cut across horizontally.”
It’s great to see a CEO (ok, former CEO) of such a major company speaking about the strategic importance of supply chains. This is something I’ve talked about many times (see here and here). For too long supply chain management has been viewed as a necessary evil and a place where cost reductions were the sole focus. Today, there’s an enormous opportunity to leverage the responsiveness of the fulfillment network and supply chain to gain a competitive advantage in the marketplace.
To realize this, leadership is required from the top down. The strategic value of supply chain management needs to be championed from the top and then metrics need to be aligned with that vision to drive the full value of impact to the organization. Failure to do this will leave the supply chain as a tactical necessity where the only focus is on reducing costs.
