Supply Chain Transformation

RICHARD J. SHERMAN is an internationally recognized writer, researcher, and speaker on trends and issues in logistics, supply chain management, technology, marketing, and organizational change. He is currently serving as Director of Strategic Development for the Council of Supply Chain Management Professionals (CSCMP) and President of Gold & Domas Research, serving corporate members worldwide. As a research director, he successfully launched the supply chain management advisory services for AMR Research and was a leading member of the team that developed the SCOR model and founded the Supply Chain Council. He is a frequent contributor of articles related to logistics and supply chain management, and speaks at conferences, symposiums, and universities.

• Foreword xiPreface xiiiAcknowledgments xviiChapter 1: Change is Inevitable, Growth is Optional 1Globalization Changes the Game 3Paradigms Drive Organizational Behavior and Culture 5Assessing Your Company’s Culture 7Levels of Cultural Maturity 9Building a Case for Change 14Paradigms Can Encourage or Constrain Innovation 16Notes 18Chapter 2: Putting the Business in Perspective 19Defining and Understanding Business Objectives 21Defining the Business within the Context of the Market 24Developing Your Vision 25Adding SWOT Analysis Puts the Business in Perspective 29Principle of Creative Tension 32Notes 34Chapter 3: Market Drivers and the Dynamics of Change 35Supply Chain is Marketing: A Tool for Analyzing the Market Environment Impacting the Supply Chain 38Scanning the Market Environment for Drivers of Change 40Systems Thinking: Your Strategy for Managing in a Changing Market 43Notes 52Chapter 4: Business Structures are the Levers of Change 53You Can’t Break Down the Silos: Collaboration is the Key 54Understanding the Business Structures and Processes That Govern the Behavior of the Organization 57Vertical and Horizontal Business Structures and Drivers 58Everything That Gets Done Gets Done through a Process . . .Business Process Management 60Chapter 5: If You’re Driven by Demand, You’re Probably Being Driven Crazy 69What are the Demand Creation Structure Process Types? 73Demand Creation Processes Impact Demand Fulfillment Behavior Dramatically 76Guess What? The Forecast is Wrong, Deal with It 79Forecasting is as Much about Art as It is about Science 82Event-Driven Forecasting is a Best Practice Imperative 84Extend Collaborative Processes to the Customer (and Supplier) 86Note 89Chapter 6: Supply Chain Management: A Pipeline of Opportunity 91Understanding the Demand Fulfillment Structure 92Major Operating Functions of the Demand Fulfillment Structure: Procurement, Production, and Logistics 94Lean Six Sigma is Not an Option—It’s a Requirement 99Leveraging Supply Chain Capability for Synchronization: Strategy, Planning, and Execution 103Notes 119Chapter 7: Okay, We Need Management Commitment; So, How Do We Get It? 121Understanding the Demand Performance Structure 122You Can’t Manage What You Can’t Measure 125Process Types That Drive the Demand Performance Structure 130What Keeps the CEO and CFO Up at Night? 131How Does Operations (Supply Chain) Excellence Impact the Income Statement and Balance Sheet to Drive Return on Invested Capital? 134Notes 140Chapter 8: Technology Drives the Waves of Change 141Scanning the Horizon for Technology Developments 142What Emerging Technologies are Likely to Impact the Supply Chain? 143How Does Technology Impact the Organization? 147How Can Information Technology Enable Business Operations to Maximize Return? 149Chapter 9: Making the Journey Happen 153We Got Management Commitment, What Do We Do Now? 154Developing an Operating Plan and Creating a Culture for Change 154Benchmarking: Perception versus Reality 161How Do We Eat the Elephant? Identifying Projects and Setting Priorities 162Jump on the Bandwagon: Communicating the Game Plan and Building Operations Support 166Note 167Conclusion: Business As Usual Has Been Canceled, Now What? 169References 175About the Author 177Index 179