Supply chain change drivers

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. 

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

Chapter 2 described examples of buzz about supply chains. Buzz is behind the scenes conversation regarding a trend. Concepts in this chapter, many of which were introduced in Supply Chain Project Management j describe six drivers, often hidden from view, fueling the need for change in the supply chain. The drivers mirror environmental trends — economic, technological, competitive, political, and social. We also describe a framework for defining supply chain requirements for flexibility. We view flexibility requirements as the cornerstone of supply chain design. 

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... 

The change in demand forecasting processes is a major change management hnrdle for the traditional supply chain. The shift from a focus on history to a focus on market drivers, or to align on demand assumptions versus debating nnmbers, is a cnltural redefinition. 

The last driver arising from innovations is what we call the supply chain flexibility imperative. Absence of flexibility infers a static supply chain that is unable to flex as environmental changes require. This is based on the assumption that few organizations do not face environmental change of some sort. Lack of flexibility also characterizes supply chains that serve different customers who have different needs with a one-size-fits-all approach. They fail to take into account the needs of different customer segments. 

Driver of change New product development Supply chain interrelationships Competitive pressures Environmental changes... 

Hameri A.P., Hintsa J., 2009, Assessing the Drivers of Change for Cross-Border Supply Chains, International Journal of Physical Distribution Logistics Management, 39(9), pp. 741-761. 

Transformation of supply chains can be driven by a company s internal problems or they can be externally driven. The type and extent of restructuring should be determined by the nature of these drivers. The relevant question to ask would be how one identifies the extemal/intemal forces driving changes, and the mapping between the drivers and the supply chain capabdities. 

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