October 2012
Supply chain’s long-standing image problem has at times masked the true importance of the function. Those who oversimplified the function as merely a means to transport products and parts from point A to point B often overlooked its strategic significance. As organizations today have become more complex and global, supply chain management has been charged with keeping pace. From R&D and product innovation to M&A and customer development, supply chain can touch nearly every aspect of the business. In light of the growing demands of the function and its rising prominence in global organizations, the game has been raised for supply chain leaders and their teams.
The increased demand for talented supply chain leaders has revealed some gaps in the talent pool. The most effective supply chain leaders are increasing their focus on building agile teams with the broad capabilities needed to manage an end-to-end supply chain. To do this, supply chain leaders (and their organizations) must commit to hiring and developing well-rounded supply chain executives with strategic orientation, business savvy, analytical skills, financial acumen, global perspective and broad knowledge of the organization. Leaders may need to look outside their industries to selectively add capabilities from best-in-class sectors and organizations, and also work to attract and retain the best and brightest young people into the function.
Dave Allen, former senior vice president of supply chain and operations at Del Monte Foods, noted that each function (including supply chain) has operated historically by solely focusing on itself. In a more global, complex world, that unilateral approach is no longer enough. As the aspirations for the function continue to grow, supply chain leaders’ capabilities must also evolve to meet those goals.
“At HP, the supply chain is crucial to the company’s earnings,” said Benoit Fagart, vice