Strategic Supply Chain Management - Supply Chain Online

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FOREWORD
on its promise. Is this the case because there was more promise than could
ever be delivered Or is it perhaps because there was, again, an incomplete
management framework on which to build a management process Or perhaps
collaborative partners never were realistic about the underlying economic
assumptions that drove them to collaborate. Perhaps a good starting
point would be to ensure that everyone (external as well as internal to your
company) who manages or interacts with collaboration partners should
read Chapter 4 and then assess honestly the current state of their collaborative
relationship.
How well is your supply chain performing How can you tell The
fifth discipline—use metrics to drive business success—teaches about the
power of measurement as a management tool. Far from being simply a collection
of numbers, the right set of metrics can provide information about
the health of each core supply chain process and identify problem areas on
which to focus. As important, the right performance management approach
will drive behaviors in accordance with your overall business strategy.
In Chapter 5 the authors show how to choose the metrics that will
inspire desired performance and how to establish worthwhile goals. The
authors emphasize the importance of balance—the need to look at performance
both internally and from your customers’ perspectives and the need
to develop a portfolio that includes a selection of financial and nonfinancial
and functional and cross-functional metrics, as well as metrics designed to
assess innovation and ongoing improvements within the supply chain.
When you are engaged in managing supply chains day-to-day amid
the operational challenges of quarterly and annual business cycles, industry
economic cycles, and shifting management emphasis, it is difficult to
lift your eyes up from the printout, the computer screen, or the factory
floor and envision your supply chain in the future. We believe that this
book will help readers to lift their eyes and dream a little. It will encourage
you to know that no matter what you have achieved until now, there
remains more opportunity and challenge ahead.
End-to-end supply chain management is not just about logistics; it’s
about building a core competency that will lead to your future competitiveness
and contribute mightily to your top and bottom lines.
Gordon Stewart and Mike Aghajanian, Managing Directors
PRTM