The Supply Chain Management Challenge
by Chuck Catania, M.B.A.

Can an effective supply chain management model be achieved? Some think so, even more are trying to reach such heights...

The focus of supply chain management seems to be so popular that nearly any association dedicated to the advancement of their profession or industry is devoting time and money to the study of the issue, including the Purchasing and Supply Management profession. Initial observations find that firms interested in supply management want to use it for increased customer satisfaction and enhanced competitive positioning, and to operate better internally while concurrently reducing costs.

To understand how to work “deeper within the chain,” one has to look at the stakeholders. Your stakeholders in the supply management model include external, employees (of the company), owners/shareholders, and suppliers (all suppliers, which include the suppliers’ suppliers), accordingly to the “Best of the Best” supply chain management Colloquia. The challenge involves equitably satisfying each representative group due to conflicting stakeholder needs.

Companies need to look beyond the boundaries of their own enterprise to capture the competitive potential of the entire supply chain. This requires increased attention to the mechanisms of integration, from both an internal and external supplier and customer standpoint. Performance measurement systems, communication, and new product development/order fulfillment cycles will need to strategically incorporate all key organizations in the supply chain.

Having studied supply chain for the past 10 years, it is my observation that Purchasing and Supply Management personnel are the critical link. When Purchasing and Supply Management managers understand their contribution to the chain, then the stakeholders’ needs will be better served. Suppliers in the chain can only be as good as their customers. Additionally, Purchasing and Supply professionals should thoroughly understand the markets they purchase from. That level of understanding needs not extend to how the product, service , or commodity was put together. But thoroughly understanding the market
is a must.

Don’t wait for the Holy Grail when trying to implement supply chain management. Seek improvements where you can and incorporate improved strategies as you go along. Of course, tie in your corporate objectives because the talent a professional supply chain management person can bring to the link can be the most dynamic step any organization can make to change the corporate culture. With improvements, not only the bottom line of your company can and will be achieved, but the supply chain management team can incorporate endless process improvements to better position your organization as a whole for many challenging years to come. Is your company ready for the challenge? Are you ready for the challenge?