Supply chain is the planning, acquisition, receipt, and management of goods and services from external suppliers for the purposes of creating goods and services for a company’s customers. Supply chain processes cover a broad range of functions, which are typically performed by multiple business units across an enterprise. For many utilities, there are significant gaps between senior executives’ views on the importance of supply chain and their perceptions of the performance of their supply chain organizations, including customer relationship management, procurement/supplier management, logistics/fulfillment. Why does this disconnect between importance and performance exist? The reason lies in the supply chain organization’s inability to move beyond its “transactional origins” to align with its key stakeholders and provide higher value services.
In order to create a successful supply chain organization, the supply chain operations must incorporate seven key principles:
Which leading practice organization design principles are you applying? For more information about ScottMadden’s supply chain organization design approach, please contact us.
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