CHAPTER 6

Supply Chain 2020

We leave the supply chain in the hands of new supply chain teams welcoming the fourth generation of supply chain pioneers.

—Lora Cecere

As we close the book on the first three decades of supply chain management, the race for Supply Chain 2020 lies ahead. What will the next decade hold? Companies want to connect through value networks market to market. The pace of change is faster. Frustration with current technologies is growing.

Effective operations, and the building of market-driven value networks, are becoming more important. For manufacturers and distributors, supply chain is business. It is central to the business operating strategy. The supply chain is the foundation for growth in either conquering global markets or introducing new product innovation to market. The road ahead is not easy. Organizations are large and cumbersome. Supply chains are complex. They are like a large ship lumbering through the night sea on a steady course at full speed ahead.

It is hard to turn a large ship. The captain of a ship navigates the seas using both art and science. Navigating the uncertainty of winds and tides makes it art. Technology combined with physics lends to science. This is analogous to today's supply chain organization. Supply chain teams today are focused on functional excellence, integration, and optimization. It is siloed with tremendous momentum to maintain status quo. Turning it and driving an organizational change transformation requires both ...

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