Supply Chain Management Best Practices, 3rd Edition

CHAPTER 1If Supply Chain Is the Answer, Then What's the Question?

Flashpoints

• A supply chain is the sequence of events that cover a product's entire lifecycle, from conception to consumption.
• A “one size fits all” supply chain strategy is doomed to failure.
• Although the modern concept of supply chain management dates back to the early 1980s, very few companies have fully embraced it.
• Building a best-in-class supply chain requires money, time, talent, energy, focus, commitment, and guts.

You Knew This Job Was Dangerous When You Took It

Imagine, if you will, a typical day in the life of a supply chain professional. Your boss comes into your office with one of those looks you've come to dread—furrowed brow, deep-set eyes, concerned scowl. He looks you straight in the eye and asks you why it costs so much to transport your company's products to your customers. You can tell by the expression on his face that he doesn't want to hear about fuel costs or industry consolidation or next-day delivery expectations from your customers. It's your job to worry about that stuff, not his. And right now, even though your budget projections say you'll have to spend at least 5% more on transportation this year than you did last year, your boss tells you in no uncertain terms that he expects you to keep the increase down to 2%, or less. Preferably less.

As you stand waiting for the Keurig machine to brew your much-needed second cup of coffee for the morning, your director of sales approaches ...