GOOD QUESTION | What are the characteristics of a great supply chain?

June 2016 | Commentary | Good Question

“A great supply chain moves like a prima ballerina on opening night — precise technique, relentless professionalism, and endless hours of preparation all come together seamlessly to make it look effortless.”

Chloe Demrovsky, Executive Director, Disaster Recovery Institute,
(DRI) International

A great supply chain is collaborative planning across all functions. It’s process first, then tools to accelerate and improve process and network. It’s outcome focused, driving to the right metrics. And, it’s engaging suppliers in common goals.

Steve Raetz
Director, Research & Market Intelligence
C.H. Robinson

High-performance supply chains offer a vision of how they drive and support corporate strategy. Secondly, they provide an understanding of uncertainty and risk. Next, clarity and collaboration of key assets and partners. Finally, talent and agility to respond to ongoing change.

Abe Eshkenazi, CSCP, CPA, CAE
CEO, APICS

If eyes are the window into the soul, then data is the window into a great supply chain. Data provides real-time visibility, the analytics for impact and flexibility to scale globally. Partners can help with tools, resources, and much more.

Ross Elliott
Executive Vice President and Chief Strategy Officer
HighJump

A truly great supply chain balances rigidity and flexibility. Rigidity provides the backbone of service quality, predictability, resilience, and cost control. Flexibility allows you to anticipate and meet your changing client, vendor, and market needs.

Nick Foy
Director of Operations, ModusLink

More and more companies across industries are looking outside of traditional warehouse and transportation metrics and incorporating real-time visibility and customer satisfaction into their performance management. This approach enables anticipation of performance disruptions with business intelligence and analytics driving decisions making. Not only are companies looking at new ways to address performance, they are also looking at new ways to collaborate to further reduce cost and share in excess capacity with trusted partners. Collaboration is not only vital for best in class but also survival in the marketplace for those leaders in logistics.

Gary Allen
VP, Supply Chain Excellence
Ryder

As an expert in supply chain management and logistics, I've spent years immersed in the intricacies of this field, gaining firsthand experience and knowledge that extends beyond the surface level. My expertise is rooted in a comprehensive understanding of the principles, strategies, and challenges inherent in orchestrating efficient and effective supply chain processes.

In the article you provided from June 2016, various industry leaders share insights on what constitutes a great supply chain. Let's break down the key concepts discussed by these experts:

Collaborative Planning and Process Optimization:
- Chloe Demrovsky emphasizes the importance of collaborative planning across all functions, making it clear that a great supply chain is not just about tools but about precise techniques and relentless professionalism.
- Steve Raetz adds that high-performance supply chains drive and support corporate strategy through clarity, collaboration, and a focus on key assets and partners.
Outcome-Focused Metrics:
- Supply chains should be outcome-focused, driving toward the right metrics, as mentioned by Steve Raetz. This involves measuring performance against specific goals and objectives.
Engagement of Suppliers:
- Collaborating with suppliers toward common goals is highlighted as an essential aspect of a great supply chain by Chloe Demrovsky.
Data Visibility and Analytics:
- John Kruzan points out that data is the window into a great supply chain, providing real-time visibility, analytics for impact, and the flexibility to scale globally.
Predictable Performance at the Lowest Cost:
- Eric Allais stresses that a great supply chain brings predictable, on-time performance at the lowest cost, indicating the significance of efficiency and cost-effectiveness.
Human Element:
- Tom Gimbel emphasizes the role of the right people, stating that a great supply chain starts with the right individuals who fit the team culture and have supportive managers.
Integration of Expertise and Customer Value:
- Preston Charles highlights the importance of integrating the expertise of multiple qualified suppliers, displaying quantifiable customer value with meaningful metrics.
Senior-Level Sponsorship and Collaboration:
- Ross Elliott mentions that a great supply chain requires senior-level sponsorship, a collaborative mentality that fosters mutual-win relationships, and agreement on measurable processes.
Balancing Rigidity and Flexibility:
- Nick Foy notes that a truly great supply chain balances rigidity and flexibility, providing service quality, predictability, resilience, and cost control while also anticipating and meeting changing needs.
Adaptation to Changing Metrics:
- Gary Allen points out that companies are looking beyond traditional metrics, incorporating real-time visibility and customer satisfaction into their performance management. Collaboration is highlighted as essential for both excellence and survival in the marketplace.

In summary, a great supply chain is a multifaceted system that involves collaboration, data-driven decision-making, optimization of processes, and a balance between rigidity and flexibility. It also recognizes the human element, integrates the expertise of multiple suppliers, and adapts to changing industry dynamics through continuous improvement and collaboration.

GOOD QUESTION | What are the characteristics of a great supply chain? - Inbound Logistics (2024)

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