Supply chains potent

We like the term potency to describe the effectiveness of projects to change the supply chain. How potent are these projects How do we define potency Potency is the power or strength of the project in terms of improving the ability to compete. We have to look beyond the measures mentioned above. Any of these measures — world class, quality, financial, or integration — are means to an end. Potent projects increase sales, market share, customer satisfaction, and cost effectiveness. 

Efforts to improve quality and integration or move the organization toward recognition as world class probably contribute to potency. But often it is the integration or the quality level itself that is the objective — regardless of impact on competitive position. One can have these things without improvement in competitive position. 

Here and in Section 5.1, we develop a framework for supply chain improvement projects in terms of potency. To help us begin and gain an understanding of contributions already available to us, we visit recent and not-so-recent thinking on strategy and operations. The models are useful in tracing how we have come to this point in our thinking about supply chains. In the next chapter we offer our version — a synthesis of these models — to help evaluate our supply chain potential for improvement. 

The models we discuss here are shown in Table 3.1. Note in Table 3.1 that each takes a different approach in interpreting the business environment. This is to be expected at this stage in the development of supply chain thinking. There are often no absolutes in the managerial world. But there are some helpful ways to think about decisions on where to invest to improve competitive position. 

Supply chain Poirier alternatives) in determining the competitiveness of the organization. Degree of supply chain cooperation and 

What constitutes supply chain integration lEEM Network News, Stanford University School of Engineering, p. 2, Summer 1998. 

Robert H. and Wheelwright, Steven C., Restoring Our Competitive Edge Competing Through Manufacturing, New York, John Wiley Sons, 1984. 

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We hope this book will help answer that question. This chapter introduces those that follow. Its purpose is to argue for a framework for analyzing and understanding the potential of supply chain projects for building "potent" supply chains. After all, this book is less about running supply chains than it is about improving them. 

We have talked about "potency" in terms of supply chain projects. Potent supply chain projects will change the basis for competing in the marketplace. Most improvement projects we encounter aren t "potent" in this sense. They may help the company stay even with the competition, but may not help them get ahead. We ll use Figure 5.3 throughout the book as a reference for classifying supply chain improvement projects. 

In this chapter we describe several models" that point to ways product and market strategy can be supported by excellence in operations, especially those operations we associate with the supply chain. The models described here provide needed background in support of the idea that the SCM role should be strategic in nature. If it is, it is potent by our definition in Chapter 3 and improves tiie ability to compete. The quotation above points to a theme common to many of these models. 

The model shown in Table 4.2 has application to supply chain thinking. Applying this model to the idea of potency. Stage 4 manufacturing — or supply chain — strategies would be the most "potent" in terms of supporting... 

We can estimate the potential of reengineered supply chain processes on organizations with different driving forces. Table 4.4 attempts to do this, and is offered with the caveat that there will always be exceptions. The objectives in the right-hand column serve as a test for candidate projects. If an existing project fulfills the listed objective, it is likely "potent" in making the company... 

The model of supply chain stage progression doesn t address the issue of potency in terms of competitive improvement. It implies that stage 4 companies will be potent competitors. However, we can envision that a stage 4 company could be only at parity competitively if its products are behind in the marketplace or if no distinctive competence has been developed. 

The diterpene taxol is used as a potent chemotherapeutic agent in cancer treatment. The hmited supply of the drug from the natural source, the bark of the Pacific Yew (Taxus brevifolia), was overcome by a semisynthetic approach. Taxol is presently manufactured by coupling the advanced naturally occurring taxoid 10-deacetylbaccatin 111, isolated from needles of the more abundant Tdxus baccata, to a synthetic side-chain precursor. 

Recent studies have suggested that MK-4, in particular, has a transcriptional regulatory function, for example, in osteosarcoma cell cultures, in which it binds to and activates the SXR steroid and xenobiotic receptor. This in turn increases mRNA levels for osteoblast markers bone alkaline phosphatase, osteoprotogerin, osteopontin, and MGP. MK-4 and its isolated geranyl-geraniol side chain was also able to suppress the synthesis of prostaglandin Ei, which is a potent bone resorption catalyst. These observations have led to speculation (i) that some of the menaqui-nones may possess some functions that are not shared by phylloquinone, and (ii) that there may be implications for cell proliferation and for cancer risk from variations in the supply of vitamin K and in its speciation. 

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