Category Archives: Miscellaneous

Is Your Supply Management Organization Ready for Convergence?

According to this recent web exclusive over on CPO Agenda on how “technology creates ever-changing leadership challenges”, 70% of top executives from multinational companies agree that there is a danger in being overwhelmed by the complexity of change as whole industries are transformed by a trend called ‘convergence’.

So what is this convergence? According to wikipedia, it could be technological convergence which is defined as the tendency for different technological systems to evolve towards performing similar tasks. Today’s smart phone is one example. We had a phone, we had a PDA, we had a gaming system, and we had a wifi laptop for browsing the web. Now we have one device that does it all (and, in the case of Apple, an iPhone that puts the one ring to shame).

And it’s happening across the board. Automotive has to build hybrid cars with integrated GPS and satellite internet connectivity. Fashion and Medicine both have to deal with personalization and custom-fit (in the former, the shoe has to be printed exactly to your foot and in the latter, the drug has to be optimized to your DNA). And technology has to adapt to the other systems you have in place. Gone is the time where you could be a master of one thing. Now you have to be a jack-of-all-trades and a master of one. It’s a daunting task, and one you’re probably not ready for as it’s a requirement most of your people probably are not ready for.

But one thing is for certain, the next few decades will prove whether or not we are the most adaptive species on the planet, because if we’re not, the impending global economic collapse could end all of civilization as we know it. Either way, we will live in interesting times and China, which once upon a time was the most powerful civilization in the world, will have its revenge.

Looking to Transform? Make Sure The Organization is Ready!

Transformation, which many companies will require to survive the next few years, doesn’t work unless it’s taken seriously, and the organization is ready for it. To judge awareness, ask these “six questions for company transformation” from a recent Industry Week article.

  1. Where is the Organization’s Culture?
    Before an organization can begin a change management initiative, it must understand the culture of the organization. What are the beliefs and expectations of the employees? If this is not understood, then it is not likely that an initiative can be designed to change their spirit. And unless the employees get behind the initiative, there is no hope for success.
  2. What starts the process?
    Most companies want to take action right away, but action is often no more effective than reorganizing lines on an organizational chart, which is rarely effective. A successful transformation begins with knowledge — a pervasive awareness of what needs to change, why, and how it will improve the company’s situation.
  3. Whose culture is it?
    The organizational culture must be owned by the employees, not by the management team or the consultants brought in to lead the change management initiative. Furthermore, the effort must allow the people to reach their potential or the change will not be as successful as the organization hopes.
  4. How Do You Know If You Are Making Progress?
    It’s not just about the metrics, which won’t convey meaningful information for months, but about the visible changes in behaviour that signify that change is taking place within the organization.
  5. When Can You Change the Culture?
    Change can only happen now, not at some future time. Each day must be an effort focussed on meeting that change.
  6. Why Do People Change?
    There are two critical steps to transformation success. The first is to understand that organizational culture will need to change. The second is to understand why it will change, which is not always obvious. For more details, see the article or The Seven Arts of Change (DavidShaner.com).

Product Recall

Product Recall

It’s coming. It costs US business over 700 Billion each year. And your product could be next. Are you taking steps to make sure that it’s not?

Remember, the supply chain doesn’t start when an order is made or stop when the product is delivered. It starts in the NPD design phase (and considers compliance and safety issues) and keeps going until the product reaches end of life and is recycled. And it only takes a single misstep for a Product Recall to rear its ugly head. That’s why good processes and quality control are vital.