Foreword

Historically, successful companies were typically known for their marketing expertise or technological innovation. Today, great companies are also defined by supply chain excellence. Throughout my 40 years at Procter & Gamble (P&G), I watched the concept of a well-run supply chain evolve from one that was barely on anyone's radar screen to one that is front and center as part of any company's business strategy.

The fact that supply chain management is now an academic discipline further changes the game. PhDs enter the market with strong business backgrounds; they bring a new and an important focus to topics such as data synchronization, information systems, and demand shaping—the horizontal structures within a supply chain organization.

While it is gratifying to see this evolution, part of the challenge is integrating this data-driven approach with an appreciation for what, in my opinion, makes a great supply chain organization great: a foundation of functional excellence. The vertical supply chain functions—manufacturing, logistics, engineering, procurement, and quality—are what allow a company to leverage the capabilities that information can provide. A company's synchronization and information systems may be the best in the world, but without outstanding execution and support, systems alone cannot deliver.

The companies that view both elements as essential—cutting-edge systems and strong functional organizations—are the companies that knit the horizontal and vertical ...

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