The 21st Century Supply Chain

3 Responses to “The Kanye West of supply chain”

  1. Bryan Larkin

    None of these seem to have the impact of what Kanye did. Some of these are self-created. For instance, many companies fail to plan for the B2B aspects of their ERP implementations until it is too late. In the late 1990s one of the largest appliance manufacturers implemented a new ERP solution – SAP, I believe. This was a multi-year project and with 6 months to go, they suddenly realized that they had not staffed for, nor planned for, the need to integrate their new ERP with their fully functional B2B program that 100s of business partners were connected through.

    This is, perhaps, a great example of a self-induced “Kanye” in the supply chain. Unexpected (though it shouldn’t have been), Pain in the Butt (absolutely), and a disruption (you betcha!). Six months and nearly forty full-time consultants later the ERP migration went as scheduled along with a fully functioning B2B program with few, if any, glitches.

    You’d think that these would be all in the past, but these types of disruptions are still very real and frequent today. Check out the recent research from AMR Research: http://bit.ly/cVBHz

    Basically, it shows that 90% of High Tech companies experience delays with ERP projects due to B2B Integration issues. That’s an astronomical number considering it is a known quantitiy and can be planned for. Sometimes they pull their B2B folks off of B2B (how important is it REALLY?) and put them on the ERP project itself, only to find out later that they really needed them in the B2B space.

    I guess bad behavior like Kanye’s is happening all the time. It seems we are addicted to it. So much so we do it to ourselves!

  2. Ron Freiberg

    I would agree with Bryan, some of the disruptions you discussed may be self induced, although I would suggest that, as a “professional” supply chain manager many if not all supply chain interruptions can be predicted in advance and planned around. What it takes to do this is an outstanding collaboration network between 1rst, 2nd, and 3rd tier suppliers, and your sales staff/ multi tiered customer base as well as keeping a very watchful eye on economic and industrial news and learning how to decipher the information and how to react as a matter of course. As Bryan suggests ERP implementations are a real pain however as a supply manager you can plan for it if the implementer is willing to tell you what they are doing. A case in point we buy a rather critical electrical component direct from a supplier who didn’t want us to know about their SAP implementation however we learned about it through an independent distributor. We went from a JIT delivery scenario to building a 6 month buffer stock within 3-4 weeks. When the supply crunch came, our competitors were left out in the cold and wanting to buy our buffer stock; guess what, they weren’t for sale. This sort of business intelligence applies to almost everything I do in the market place and it works.

  3. Bill DuBois

    Bryan and Ron, thanks for the comments. It is interesting how many SC disruptions feel like surprises. Many processes are designed to run like clockwork but it is not always business as usual. Great strories. Ron, just goes to show that if you only know about things in time, you can do something about it. Thanks again for the comments.

Leave a Reply