SupplyManagement.com recently posted an article on Command and Supply which stated that if you apply the seven supply chain commandments to your procurement practice — and ensure its daily execution is faultless — you will achieve superior performance. While I don’t disagree, I think the commandments can be simplified and amalgamated. In fact, I think they can be reduced to one!
But first, the commandments:
- Articulate a clear value-creation algorithm
- Approach the supply chain as a comprehensive value delivery system
- Segment the supply chain and consistently adapt it to the characteristics of each segment
- Optimize the global operations architecture for scale, access, flexibility and risk mitigation
- Selectively invest for mastery in differentiating capability areas
- Deploy information systems that deliver insightful analytics, alignment and responsiveness
- Drive process execution discipline with the right talent, powered by a culture that enables high performance
They’re all good. But I think this one commandment covers it:
Focus on Value
If you do, you
- will create a value creation algorithm,
- focus on the creation of a value delivery system,
- segment the supply chain into segments which require different approaches for value creation,
- optimize for scale, flexibility, and risk mitigation,
- invest for mastery where the returns are greatest,
- will acquire systems that provide real analytics, and
- drive for continual improvement in process execution.