Executive Briefings

The Definition of 'Supply Chain' Is Wide. It's Too Important Not to Be.

Supply chain overlays the sales and marketing organizations and the procurement function - which have defined their roles too narrowly. Too few are focused on the role of the organization in driving value networks to improve value-based outcomes. Most lack the understanding, and they are just not incented to build value networks. The focus has to be market to market. The supply chain team can make a difference, but it requires reschooling. It is about much more than trucks and sheds. Or pumps and valves. Or contracts and negotiations. It is the end-to-end process: from the customer's customer to the supplier's supplier.

Supply chain is business. It is a better way to design business networks to drive value-based outcomes. It is a shift from marketing-driven to market-driven. It is a transition from digital marketing to digital business. People want to talk about the fact that sales, marketing and supply chain need to get along and align. But in today's world, they won't. They are incented differently in the organization, and the incentives put them at odds. Instead, the leadership team needs to build a strategy for the entire organization to focus on the delivery of value-based outcomes. The supply chain can then be the catalyst to map the processes outside in.

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Keywords: supply chain, supply chain management, role of supply chain, supply chain leadership in enterprise

Supply chain is business. It is a better way to design business networks to drive value-based outcomes. It is a shift from marketing-driven to market-driven. It is a transition from digital marketing to digital business. People want to talk about the fact that sales, marketing and supply chain need to get along and align. But in today's world, they won't. They are incented differently in the organization, and the incentives put them at odds. Instead, the leadership team needs to build a strategy for the entire organization to focus on the delivery of value-based outcomes. The supply chain can then be the catalyst to map the processes outside in.

Read Full Article


Keywords: supply chain, supply chain management, role of supply chain, supply chain leadership in enterprise