Supply chain change

How does the outside-in locus supply chain change processes ... 

Ayers (2006) advocates that the Demand-Driven Supply Chain changes many of the conditions that cause wasteful variation in supply chain production. He states that, it is the foundation of the lean supply chain, and its implementation helps establish the operating range for low-cost production supply chain. 

Drivers of Supply Chain Change Six drivers of change The role of innovation The flexibility imperative Criteria for a great supply chain... 

We stated previously in this chapter that different industries and companies will view supply chains and supply chain change in different ways. 

People working in supply chain operations do not always connect drivers of supply chain change to what they do daily. Also, most drivers are far beyond the power of individuals to affect. Here we make a connection and explain how these drivers are at the bottom of many supply chain... 

With this chapter as a checklist, the reader should examine each supply chain change driver and the potential impact it can have on his or her operation. This should lead to questions whether the organization is doing enough to deal with the drivers. 

Without innovation, the push for supply chain change would be much more limited than it is. Product innovation increases the value of products to customers. The reward is more than a minimal profit over cost — the kind of proht enjoyed by innovators such as the developer of a new pharmaceutical and software seller Microsoft. The profits fund new investment, enrich producers, and fuel more innovation. 

CPFR is a good example of an industry s response to the need for supply chain change. But what general form might collaboration take between two or more trading partners An earlier article outlined a vision for Stage 3 supply chain collaboration efforts. " The term Stage 3 comes from the third, or supply chain, level as shown in Table 3-3. Multicompany collaboration features include ... 

The following sections describe the economic rationale for globalization from a macro perspective and the motivators for supply chain change from a micro industry and company-level perspective. 

A Enhancements to existing products Derivative products Variations on similar products Products have minor improvement Modifications include different content but same basic form Minimal supply chain change Tuning, incremental changes Confined to one department Some changes could produce supply chain change... 

E Partnership projects Likely to require a new supply chain if product is new Supply chain change is likely... 

The E-type projects are joint efforts with multicompany participation. We address the issues surrounding alliance and partnering projects in our discussion of partnerships beginning in Chapter 19. Chapter 29 also describes some techniques for coordinating supply chain change during the product development process. The discussions in these chapters can apply to all five types of project shown in Table 12.1. 

This chapter describes foundation elements for supply chain change. Foundation elements are the basic building blocks needed if change is to occur. They are cultural rather than structural. Their existence will depend on the values, beliefs, and management philosophy of the organization s leaders, not on formal rules or procedures. We describe four in this chapter ... 

Ideally, those responsible for supply chain change in a business unit would follow a deliberate process similar to the model shown in Figure 13.1. An organization needs a structure like this to control the change process and communicate that process to its employees. A disciplined management team will insist on it. 

Implementing supply chain changes is not unlike other change programs that have either been used in the past or are current today. The total quality philosophy and toolset are as relevant as they have been since their inception. This philosophy includes dissatisfaction with the status quo, satisfying customers, a process rather than an organization orientation, and extensive use of teams. 

TABLE 14.1 Functional Roles in Supply Chain Change... 

Figure 15.1 repeats a model for supply chain change introduced in Chapter 13. Such a model could form the nucleus of a singular methodology, Level 3 in the Kerzner maturity model. We have already used the approach to define the supply chain strategy. An important point is that it also applies to process improvement projects that implement the strategy. 

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