Strategic Supply Chain Management - Supply Chain Online

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128 Strategic Supply Chain Management Even worse than making wrong fits is designing an organization that is too strongly influenced by the skills and interests of existing employees. We worked with a computer peripherals company that was moving to an outsourced production model. The company engaged two contract manufacturers, each responsible for a major product line. The supply chain vice president created two relationship manager positions, knowing that managing each of these new relationships would be a full-time job. Not surprisingly, several current employees saw the new positions as an excellent opportunity. Although the new jobs called for a more sophisticated set of skills, the vice president found himself lobbied aggressively by internal candidates. He also was under tremendous pressure to “just get someone in here.” He ended up hiring both an internal candidate and an external hire—a seasoned industry expert who had been managing a contract manufacturing relationship for several years. Not surprisingly, the “home grown” relationship manager struggled with his new responsibilities. After six months, he was replaced by a more qualified individual. The lesson Your supply chain strategy and associated processes will fail to move your company forward if you don’t have the right people. Effective execution demands the right skills and capabilities. Define your organization around the end-to-end supply chain processes, identify the skills you need for each role, and then go shopping—both inside and outside your company. Don’t let the “inventory on hand” limit the success of your organization. NEXT-GENERATION ORGANIZATIONAL DESIGN The end-to-end supply chain typically needs management skills and roles that did not exist previously (see Figure 3-11). Given the relative newness of some of these positions, your human resources department may not know how to find the people you need or how to screen them effectively without some support from your organization. To ensure that you have the right people in the right positions, put together a description of your supply chain strategy, a description of each key role, a clear definition of available career paths, and a comprehensive hiring plan. This is not to say that every reorganization requires a major workforce turnover. Most supply chain organizations have only a few extremely critical roles—before or after an overhaul. These are the jobs that require specific qualifications, and you shouldn’t settle for less. Current employees, with appropriate retraining or coaching, can fill most of the other roles in your new organization.
CHAPTER 3 Core Discipline 3: Design Your Organization for Performance 129 FIGURE 3–11 New roles for end-to-end supply chain management. New Role Outsourcing Partner Relationship Manager Make Global Commodity Manager Source Customer Relationship Manager Deliver Supply Chain Process Improvement Manager Plan Supply Chain Performance Analyst Plan Key Required Skills • Ability to negotiate strategic alliances and partnerships • Ability to drive best-in-class performance from supply chain partners • Ability to inspire individuals within various organizations to work collaboratively • Ability to manage across continents • Ability to manage ongoing relationships with key suppliers and to execute the global supply chain strategy for products purchased from these suppliers • Ability to structure the supply base to achieve the lowest total cost of ownership • Ability to manage suppliers through objective measurements and regular generation of formal supplier scorecards • Deep understanding of the customer’s business and channels • Sufficient understanding of supply chain operations to ensure implementation of core processes that support customer requirements • Thorough understanding of supply chain best practices • Ability to inspire individuals within multiple functions to work collaboratively • Ability to recognize opportunities for process improvement and appropriate automation • Thorough understanding of supply chain metrics and appropriate methods for target-setting • Ability to institutionalize metrics-driven reviews and continuous improvement programs
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Want to learn more We hope you enjo
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Copyright © 2005 by The McGraw-Hil
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viii CONTENTS OWENS CORNING PROFILE
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x FOREWORD now it has to be brought
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xii FOREWORD Another “early adopt
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xiv FOREWORD through research, use,
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xvi FOREWORD on its promise. Is thi
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xviii ACKNOWLEDGMENTS owe thanks to
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2 Strategic Supply Chain Management
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10 Strategic Supply Chain Managemen
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Stage 4: Cross-Enterprise Collabora
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FIGURE B-3 Summary results of popul
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308 Index Business strategy: metric
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310 Index F Faught, Laura, 175-176
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312 Index Mexico, 96, 196 Michelin,
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314 Index Regional planning group,
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316 Index Toys “R” Us, 53 Trace
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