Supply Chain Transformation

Explore Critical Cogs to Successful Supply Chain Transformation

PurchTips Edition #432

The mandate of the Certified Supply Chain Professional in the Global Innovation Landscape is one of transformation. Effective Supply Chain Transformation is driven by Systems Thinking and fueled by seven critical cogs. These cogs are:

  1. Vision – This must be inspirational, shared, and crafted in collaboration with all key stakeholders, to harness the power of alignment and buy-in. A Supply Chain Management Vision must be forward thinking, but realistic and appropriately challenging. The vision must set a clear direction of how leaders plan to assist their perspective organizations to navigate the demands of the modern business landscape.
  2. Right People – The Supply Chain Professional must influence the selection and retention of personnel who are responsible for the execution of critical functions are the right fit. Criteria for selecting the right supply chain transformation talent would vary from company to company. The key is to retain talent that is aligned with a firm’s strategic direction.
  3. Cutting Edge Skills – Special care must be taken to assure that all essential supply chain employees possess the required skill sets to execute their respective visions and the challenges they will encounter. This can be done by assessing the current talent level and providing training through a robust supply chain management certification and courses to close obvious gaps.
  4. Robust Processes and Technology – For companies to maintain competitive advantage they must have efficient processes, where waste is continuously measured and unwavering reduced. Supply chain leaders must assure that robust processes are fueled by easy to use, a technology that leverages the power of real-time big data analysis.
  5. Balanced Metrics – Supply Chain Professionals are pivotal in assuring the development of the right blend of metrics. Process metrics such as lead-time, material availability, obsolete/excess inventory, and upside chain flexibility are just as important as the % of highly trained professionals in a business system, employee turnover, and customer satisfaction. The idea is not to drive an organization solely on financial measures. The optimal balance comes from selecting metrics from financial, customer, process/quality, and employee dimensions.
  6. Rewards and Recognition – Special care must be made to assure that employees are recognized and rewarded for good work. Lack of appreciation is a huge contributor to employee turnover according to Gallup.
  7. Culture for Innovation and Accountability – The Certified Supply Chain Professional has the skill set to support the development of a culture of entrepreneurship, accountability, innovation, change management, risk-taking, and risk management, and must rise to the challenges of today’s global supply chain environments.

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The Future Direction of Procurement & Supply Chain

The saying goes: “The only constant is change.” Nowhere is that statement truer than in procurement and supply chain management.

Procurement and supply chain are fields that have changed tremendously throughout the years. They are much more multi-faceted disciplines than they were even just a few years ago.

If you’re a procurement or supply chain professional and you haven’t adapted to new ways of carrying out your work, the world is passing you by. You must prepare for the future of these important business functions. Download a free copy of Future Direction of Procurement & Supply Chain.


Copyright 2019. This article is the property of the Next Level Purchasing Association and may not be copied or republished in any form without the express written consent of the Next Level Purchasing Association. Click here to request republishing permission.

By David Millington, SPSM, SPSM2, SPSM3 - Director of Education (Next Level Purchasing Association)


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