Lora Cecere writes for Forbes that supply chain was originally envisioned as a set of end-to-end processes from the customer’s customer to the supplier’s supplier. Instead, supply chain has only become another function in silo organizations. Cecere believes this trend must be reversed, because cost cutting and improving working capital are two challenges of business that can only be overcome in the best way by better use of supply chain. There are three ways to revise how supply chain is run in the business:
- Focus end-to-end
- Help employees to see data-driven decisions
- Orchestrate demand to supply
On that first point, Cecere says, “Focus your teams on building successful horizontal processes of revenue management, sales and operations planning, supplier development and corporate social responsibility.” Horizontal processes also make it possible for demand-shaping programs to work in tandem with commodity strategies. It is alarming and extraordinary how few businesses are actually making use of these lucrative ideas at present. See to it that you help change that.