The Seven Deadly Supply Chain Sins

1. Selfishness

In today’s world, it is not about your organization versus your competitor’s organization. It is your supply chain versus your competitor’s supply chain. Therefore, it’s essential to eliminate the boundaries between organizations and make sure you and your supply chain partners are really working as one to increase customer satisfaction and market segment. Share information and assure that all links have a common, wholelistic view of the entire supply chain.

2. Short Sightedness

The traditional approach of supplier and customer revolving doors is counter productive. Instead, look at the big picture and establish a strategic plan for supply chain evolution so that you are making long-term investments. You need to be sure your cost reduction efforts are true supply chain cost reductions and not simply the shifting of cost to supply chain partners.

3. Low Commitment Level

The supply chain requires active participation throughout the organization with appropriate vendor and customer peers. Executives need to spend time with key supply chain partners, and organizations will benefit from focusing on their accountability to partner initiatives. Supply chain partners must have a consistent view of their commitment to each other and to the supply chain.

4. Contentment

To truly challenge the status quo and take risks, supply chain partners should always be willing to think outside the box. Envision a clear, well-defined process of continuous improvement throughout the supply chain and a shared vision of opportunities for improvement that is continuously updated. Supply chain partners must keep working together for individual link and supply chain improvements. A contented supply chain is an obsolete supply chain.

5. Rigidity

Ease up! Maybe the contract says 5% discount if ordered in truck load quantities, but as a result of changing from a 53’ trailer to a 48’ trailer, your partner did not qualify for the discount. Legalistic pursuit of contracts and petty pursuits of “You did it/no you did it” are counter productive. Supply chain partners need to work together as one for the best interest of the total and stop rigidly applying rules and procedures. Let’s be accountable for our actions and minimize the need for us to play “watch dog” over one another.

6. Failure to Prioritize

Both your organization and your supply chain must benchmark and establish clear priorities that are mutually understood by all partners who are impacted. Leadership sets realistic timeframes and expectations for accomplishing priorities and updates priorities as appropriate. Accepting too many priorities impedes progress and results in a deterioration of performance enhancement momentum. Use priorities to focus the evolution of Supply Chain Excellence.

7. Poor Communications

To avoid making this mistake, tactical and strategic information should be openly shared throughout the supply chain. Minimize surprises! Put procedures, processes and technology in place to assure that all partners have the same view of the evolution of the supply chain partnerships. Assure that communications within your link are shared with your partners.