Session TD3 - Controlling the Supply Chain

Day

 Thursday, October 16, 2008
Room Crowchild

Presentations

3h20 PM-
3h55 PM 		10 Fundamental Strategies and Best Practices of Supply Chain Organizations
  Bob Engel, CPM, Resources Global Professionals, Houston, Texas, USA; Bob.Engel@Resources-us.com
One of the gratifying trends in supply chain management is that most companies are actively realizing the importance of their supply chains.  The positive impact is that as supply chain professionals, we can not only achieve saving money for our company but also be a participant in improving company performance, effectiveness, and efficiency.  Many companies and supply chain organizations, in fact, have begun taking steps to move towards implementing philosophies, methods, and processes that would be considered “world class or best practice”.  Supply Chain organizational leadership is now challenged with taking the reins to lead their organization to new levels of achievement.  Here are 10 fundamental supply chain initiatives that we believe are key for building a best of class supply chain organization. 

This white paper does not pretend to have a precise roadmap to follow in order to achieve desired supply chain maturity and excellence.  It does, however, offer insight as to the key attributes that should be adopted or addressed. The 10 fundamental strategies and best practices discussed below are common elements that should be embraced.  The sequence order of these “10” do not specify or recommend a higher vs. lower importance ranking, but does offer a systematic sequence when developing a scorecard of effectiveness in building a best of class supply chain organization.  That said, let's examine these 10 initiatives. 

The ten are: 

  1. Establish a governing council

  2. Align the supply chain organization

  3. Recruit supply chain professionals

  4. Set the strategic sourcing strategy

  5. Establish key supplier alliances

  6. Manage total cost of ownership

  7. Manage compliance and risk

  8. Optimize company-owned inventory

  9. Gather information on a timely basis

  10. Establish processes and controls
4h00 PM-
4h35 PM 		Are You in Charge of Your Own Destiny?
 

Elizabeth Barber, Lecturer, School of Business, University of New South Wales, Canberra, Australia; e.barber@adfa.edu.au

  1. Competition is often occurring not between products but between supply chains

  2. Supply chains are achieving closer collaborative relationships along supply chains than ever before due to technology enablers and the drivers for competitive advantage

  3. Strategic choice in supply chains have rested with Fisher's (1997) work based on functional and innovative products requiring efficient or responsive supply chains; and Christopher's (2000) work based on 'lean', 'agile' and 'le-agility' strategies.

  4. Close collaboration implies that each participant of the supply chain will be working in unison with other participants and it is assumed that strong strategic alignment occurs between all participants.

  5. Depending on who is the dominant player in the supply chain will determine to varying degrees the overall strategic goals of the chain.

  6. Whether the other participants of the supply chain adhere to the dominant player's strategic choice will depend on a variety of factors.

  7. A model is developed in this paper that shows the determinants that influence the acceptance of the dominant player's strategies.