Beyond Supply Chain Thinking

Demand for rapid improvement and technological innovation are driving the creation of the connected enterprise -- a network of inter-connected processes and “systems”, from supply chain management, enterprise risk management, enterprise resource planning and many other “systems” which work collaboratively to bring value to the organization and its customers. These new, customer-centric “systemic” chains have accelerated the convergence of information flows, product flows, and payment flows, and are transforming the ways that companies produce goods and provide services.

Managing the “connected enterprise” provides insight into new ways of doing business. It moves beyond the linear thinking of incremental, short-term improvements in productivity and efficiency to address the longer-term, exponential changes that organizations must make in order to manage the complexity of today's fluid network of processes, systems, suppliers and customers.

Optimizing the performance of the different parts of the “systemic” chains within any organizations requires a holistic approach to the use of technology and critical information flows in timely manners at the least amount of cost. The opposite of optimize is sub-optimization and such increases cost and complexity. Many organizations today have different technology initiatives and suppliers to address Supply Chain Management, ERM and ERP. SCM, ERM, ERP all require database driven technologies with robust interfaces into multiple “organizations” internally and externally. Creating a free flow of information across organizational boundaries can increase learning, reduce decision cycle times and advance knowledge between departs and with key suppliers.

The problem today is that most organizations do not view the organizations needs holistically rather departmentally thus creating silos of cost and improvement initiatives. The silo approach only creates cost down the road and a lack of inter-connectivity of vital data and information necessary for long term strategic improvements.

There are many barriers within any organization that create constraints to viewing and building “systemic supply chain management”. Unless these barriers are addressed, maximizing the value of a “connected enterprise” cannot be achieved nor can the maximum value be obtained. The barriers are primarily a lack of thought leadership provided by executives whereas they are the ones who approve or disapprove of initiatives and related budgets. Executive management holds the power of change and create subsequent improvements. Thought leadership drives everything.