Supply chain viewpoints functional viewpoint

His situation calls to mind the discussion in Section 2.1 about different industry supply chain viewpoints. These begin with lip service, where the supply chain label is placed on an existing department with no real change in the scope of responsibility. Other viewpoints do have expanded roles but tend to focus on either procurement or distribution, functions associated with purchasing, warehouses, and transportation. 

The functional supply chain viewpoint exists in most companies today, and should be considered the "base state." When talking to companies about SCM, we assume this is the perspective that exists in the company. Organiza-... 

In the functional organization, strong department heads sponsor change projects. Cross-talk in pursuit of interdepartmental process improvement is minimal. Information systems also center on the needs of the departments. Projects may or may not improve the supply chain as a whole. In fact, a local optimum can be injurious to the whole, yet department heads take credit for their savings. Where the functional viewpoint prevails, the actual impact of improvement projects on the total supply chain is not measured. 

The typical mindset lags far behind what is needed to build great supply chains. First, the supply chain is not usually seen as a source of strategic advantage. But the functions that comprise the supply chain, such as procurement, manufacturing, and distribution, do contribute their pieces to their strategic plans. They do so, however, as functions and not with an integrated supply chain viewpoint. 

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