Prakash PK Menon writes on the game changing role of the supply chain director
There is an old saying which goes like this: a chain is only as strong as its weakest link. Nothing can describe the importance of supply chain more aptly in a retail organization. If the supply chain crumbles, it can topple the foundation of the organization. A weak supply chain can cause losses of billion of dollars. It can drive away its customers to the competition. And, a retail organization cannot simply afford it. Every single penny counts. Every single customer matters.
The face of supply chain management has changed drastically in the recent decade. From disparate functions such as procurement, production and logistics, the supply chain has moved to a more complex system that calls for an integrated and holistic approach. The reasons for this shift can be attributed to a set of new market dynamics such as change in customer preferences, acceleration of technologies such as big data and cloud computing, fierce competition among e-commerce players, cross-border business expansion and the growing use of social media and digital marketing tools.
Now, while retailers are making every effort to build their competencies and adopt a sustainable supply chain model, they are struggling to source the right talent who can lead this strategic transformation. A global survey Sustainable Supply Chains: Making Value The Priority conducted by PwC and APICS Foundation revealed that the biggest barrier to the success of a companys sustainable supply chain practices was a lack of leadership support. This fact clearly indicates that retail organizations need to create a role that can alter the direction of the retail game in their favour. In my opinion, a supply chain director fits this role perfectly. He can become the game changer for his organization in the new millennium.
Supply chain directors can bring the focus, discipline and accountability in the entire supply chain management of the organization. They think beyond the obvious and their functional expertise. They formulate a strategy that interweaves supply chain with every business function to deliver the maximum business impact in terms of profits, revenues and customer satisfaction.
Most businesses are either already transcending the geographical boundaries, locally and / or globally. This calls for transformational capabilities, integrated planning and collaborative efforts across the organization. Supply chain directors not only strive to achieve operational excellence, but also work with the mindset of a CEO. Apart from possessing technical skills and know-how, they display a fine sense of business and financial acumen. They can speak as enthusiastically about the organizations balance sheet and ROI as they can about their core areas of expertise – logistics, inventory, sourcing and production.
Technology challenge in supply chain is another area that Supply chain directors can handle deftly. According to a Accentures Global Megaoperation Study Big Data in Analytics in Supply Chain: Hype or Here to Stay, many organizations are realizing the importance of new age digital technologies such as Big Data and Predictive Analysis to build sophistication and efficiency into their supply chain. However, implementing these technologies is a huge concern owing to a number of factors, including lack of in-house human resource who can act like a data scientist. Supply chain directors can come to rescue here as they are very tech-savvy and can leverage data to obtain real time information, predict trends and enable better decision making.
Supply chain directors have an experience across cross-functional and cross-organization challenges. They can pull all resources efficiently and effectively to implement an integrated value supply chain and provide end-to-end solutions. They are people who can bring the pieces of a disintegrated puzzle together and integrate them to create a complete and bigger picture.
If a Supply chain director isnt in your boardroom yet, you need to act fast.