The traditional view on supply chain management is changing


I’ve suggested several times (see here as one example) that there’s a change underway in how supply chain management is viewed.  The traditional view is that supply chain management is all about cost reductions – impacting the bottom line.  I’ve suggested in the past that I’m seeing a shift, where more and more companies are seeing the strategic impact that supply chain management excellence can have on the top line.

IndustryWeek just published an article citing new research from Archstone Consulting that states the following: “Over 80% of manufacturers have responded to the current economic climate by devising aggressive agendas to boost sales and cut costs.”  They went on to say “An interesting pattern emerged, in that manufacturers across the board have high expectations for their supply chains to both boost revenues and reduce costs.”

It took some pretty intense market pressures, but this is a positive shift for the long-term.


  1. Our research concurs that emphasis on manufacturers’ supply chain operations is geared to streamline AND strengthen business process within the company and with trading partners. Operational silos are falling as transparent metrics, incentives and market focus drive alignment.

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