Logistics within Business Organization
Why have supply chain management issues often been ignored by senior management?
In supply chain management, the term file and forget is very common. Most people in different levels of the supply chain have done this and have been at peace with it. In most cases, filed documents are not seen on a regular basis since people worry less about them unless prompted to look into them. If this is the case, one is prompted to ask why a senior manager would bother so long as he or she knows that the people he or she has put in charge are performing their assigned duties. In cases ...view middle of the document...
It would be a good idea to facilitate awareness to the senior management on the supply chain process so maximum understanding.
Describe the strategy you would employ to sell senior management on the benefits of focusing more attention on supply chain management. (Be sure in addressing the strategy question that you incorporate examples from Abercrombie & Fitch’s experience described in Dutton’s article and the suggestions noted in Rudski’s article)
Managers at 107-year old Abercrombie & Fitch know that. The company began a global expansion a few years ago, and now has nearly 1,100 stores in the U.S. and Canada, and five in the UK. A flagship store is set to open in Tokyo later this year. Speaking at last year's CSCMP Annual Conference in Denver, she says the expansion offers "a great opportunity to affect costs and develop the logistics processes that get inventory to the right place at the right time and ultimately drive down cash involvement of the company."
To effectively sell the supply chain upward throughout the organization, managers need to sell the benefits of implementing supply chain improvements. "Show how you can contribute to help position the product and price it appropriately without driving up inventory." Winning the point, however, requires metrics to support the premise.
Another 'sales' option is to propose initial projects maybe based upon case studies from similar companies or even from other industries. Subsequent follow-up projects, on the other hand, should be supported with 'before' and 'after' assessments from your own company's experience (so keep good records and build up a library of metrics to lend credibility to your argument).
The point, LaRue says, is to argue-and demonstrate- that better supply chain/logistics processes, or better training or the better use of technology can pull costs out of the system and thereby reduce the per unit costs of inventory items.
Logistics service providers, such as 3PLs or 4PLs, can be allies in this endeavor. By virtue of their wide exposure to many different companies and practices, they have developed best practices that can be leveraged to minimize the trial and error aspects of new endeavors. And, they have the metrics to support their...