'Management'

Apr 30

Is Supply-Chain Management a Business?

0 Comments Written by Frank Callom in Management

When business people discuss Supply Chain Management (SCM) most think of it as a process within a business. For example, supply chain management in Office Max or Ford or Merck is a function inside of the business i.e. Merck for example. Right? Wrong!

There is no reason why the process itself of Supply Chain Management can not be handled as a business. I have found the business functions apply to the processes in side of a business as well as to the business itself.

A corporate strategy model to define the business usually include the following elements:

A Vision and Mission Statement, Objectives, Strengths and Weaknesses and a Strategy.

Applying these to Supply Chain Management can further define its role and relation to the firm. It will provide management support knowing the function is in sync with the firm.

Do you have a vision and mission statement for your department? What are your objectives? Do you have a SWOT analysis provided? Is your Strategy complimenting the Company Strategy? Do you know what it is?

Here are some questions I developed to help with the strategy design:

  1. Is the proposed SCM strategy consistent with the mission of the firm?
  2. Is the proposed strategy consistent with the objectives set for the firm currently?
  3. Does the proposed strategy take advantage of externally favorable conditions? Does it accommodate current environmental threats? Have we planned for potential changes that may affect the strategy?
  4. What are the assumptions of the strategy: market assumptions, competitor assumptions, technology assumptions, supplier assumptions, etc.?
  5. Does the strategy take advantage of current internal strengths of the firm and your department? Is the strategy vulnerable to current internal weaknesses?
  6. What your current resource deployment: approaches, manufacturing strengths, cash position, competitive strengths, past delivery performance, current margins, etc.?
  7. What changes are needed in your department to carry out the strategy?
  8. What is the likelihood you can make the necessary changes? Are the resources sufficient to make the changes? Is the current organizational structure positioned for change?

Calcore consulting has the expertise in conjunction with your team to develop these functions within your Supply Chain Structure. Remember SCM is not only a function and a process but also a business within a business. Always treat SCM that way and you will reap the benefits.