Thursday, August 5, 2010

So Who Cares About Supply Chain?

Well, nobody really, and why should they? I was in an online discussion group recently (that is where I get a lot of my ideas for blog posts) and our group members were discussing how our chosen career seems only to get press when things go wrong. Save money? That's expected. Everything get here on time? Expected. Miss that shipment? Now we get attention!

So as managers, how do we insure that our group gets the recognition it deserves? This is not just a question of morale. When resources are allocated (or eliminated) the company needs to understand our value add. Supply chain also needs a seat at the table when key decisions are made, as we really can have a big effect on cost and customer satisfaction. Let's look at how to do that.

Step 1: Get out much?

I am a self confessed supply chain/logistics nerd. I love to look at the latest data, understanding what fuel surcharges are doing to cost per kilo out of Bangkok, how many PO lines were placed last week per buyer, looking at the S&OP data. Being on top of that data makes for better decisions for sure. (or maybe it means I need to get a life).

I dont kid myself though. This information, even a great improvement on one metric or another, is only mildly interesting to my peers or my boss. My monthly review may have all my personal hot button issues, and I may have automated that report so that it automatically gets sent to my Blackberry at 12:00 midnight on the 1st. If my boss and peers don't need that information, I might just want to keep that to myself.

So we need to get out. We need to insure that we understand 2 key things.

One is that we "get" all of my business unit's goal's, objectives and metrics. The key is that all of my reporting needs to be put into terms that show how what I am doing affects our success as a group. This is not just numbers. What are your strategic goals? What is your boss getting pushed about right now?

Two is to spend time with our customers. Find out what your competitive issues are. Take a salesman to lunch. You will be surprised at what you find out. Find out the things your internal customers are struggling with. It is information? Cycle time?

Make sure every one of your staff understands these issues as well and know this is why they show up every day.

Step 2: Get Relevant

Is cash an area of focus? Then I need to be able to talk about what I am doing for inventory reductions. Is the group trying to break into a specific account? Show how your new 3PL contract can save money on their shipping lanes. Let's face it, we are here to add value, and that value is in how well we support the team. Let's make sure we do that.

Any projects or programs you start or work should be based upon these issues and presented as such to your group. Once you are "aligned", your routine reports will be your best sales tool. It will be easy to garner attention from your customers and management, because you will be talking about things they care about, and if you are good, you will be able to show progress in support of their goals.

Focus on cost, quality and efficiency is good, but it is also expected. Show your group as a key part of the solution to meet the company's goals and objectives. You will be looked upon as a key player, because you will be one. People want to support you if they think you are there to support them.


 

Its easy

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