We have an opportunity to build strategies and create value working side-by-side with colleagues from related disciplines. As the connector between brand strategies and execution at the customer level, supply chain alignment seems a natural objective. In essence, we have an opportunity to ensure the goal of every company with a retail product – that the right product is available at the right place, at the right time, in the right quality and at the lowest possible cost.

We in supply chain management need to be agents of change – helping our colleagues across the business to shift their view of the supply chain from that of a cost center to that of a growth opportunity. We need to repurpose the supply chain and make it a source of competitive advantage. Aligning the supply chain with the business strategy allows the organization to capture cross-enterprise opportunities that not only generate cost and capital efficiencies, but also helps to drive top line opportunities.

To begin, we must examine the financial and operational anatomy of each link in the current chain, identify opportunities for improvement, and recommend action plans, as appropriate.

Once the aforementioned work is completed, we will be prepared to work with our colleagues in other functional areas of the business in order to pursue the following challenges:
• In aligning the supply chain strategy to the business strategy, the supply chain focus needs to start with the customer and then extend back to the company. Without this perspective, supply chain management will tend to focus exclusively on internal costs and return on assets.
• A future horizon must be defined and looked to in establishing a desired future-state vision. The ever-changing business environment requires a view to the future in driving new capabilities.
• Both within the function and throughout the business, the view of the supply chain needs to shift from that of a cost center to that of a growth opportunity. This creates the focus on developing supply chain capabilities that will enable growth in the marketplace.
• Both internal and external views must be taken into account in order to develop an honest assessment of the company’s capabilities and performance and to help identify gaps. While this critical view might bring some pain to those areas with the largest gaps, this inside/outside approach enables the proper assessment of where fundamental operational improvements and future capabilities are needed.
• The company’s long-term business strategy needs to be well-defined, shared and understood, especially around products, customers, and distribution channels.
• Strategy development work requires broad internal support and should be organized accordingly. All supply chain functions, as well as finance, marketing, and sales, are key participants to this process.

Paul Tasner
Reclipse Group, Inc.