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Living Supply Chains: How to Mobilize the Enterprise Around Delivering What Your Customers Want

Book Description

Living Supply Chains contains much more than its title suggests. This fine book challenges modern managers to consider again the role of supply chains in their businesses and offers genuine answers to the questions they face. John Gattorna highlights the way forward in matching supply and customer demand." Michael Andrews, Director, Tenon Ltd John Gattorna has brought Supply Chain right into the executive suite where it belongs. The opportunity for business leaders clearly outlined in Living Supply Chains is to create real organizational alignment with your end markets, and in the process better comprehend the role leadership and people play in making supply chain an integral part of a High-Performance business." Jeffrey Russell, Managing Partner, Supply Chain Asia Pacific, Accenture The challenge of supply chains has long been omnipresent, but as our world becomes more complex and our supply lines longer, the power of our supply chain management capabilities to create and destroy value is magnified. Why do our supply chains succeed or fail? The answer lies in alignment. The alignment of the needs and values of our customers, our own organisation and our suppliers. When it works it's truly magnificent, and what makes it work is people. People are at the heart of Living Supply Chains, and the key to a better supply chain future." Jon Bumstead, Strategy & Business Planning Director, DHL EXEL Supply Chain John Gattorna is one of the most original thinkers in the fast-changing arena of supply chain management. He has pioneered the idea of dynamic alignmentwhich is so powerfully presented in this ground-breaking book. If proof were needed that successful companies compete through their supply chain capability, then this fascinating book provides it." Martin Christopher, Professor of Marketing & Logistics, Cranfield School of Management, author of bestselling Logistics and Supply Chain Management "Dr Gattorna has enlivened the book with real examples from around the world both insightful and highly readable" Ralph Evans, CEO, FAICD J. Sainsbury recently lost share in the market by failing with their supply chain. Wal-mart and Dell won in the market by getting theirs right. Smart supply chains can be decisive. In the J Sainsbury debacle, there was nothing wrong with the strategy, except no one thought to check if the personnel in the company were capable of delivering such complex and sophisticated plan within such a short timeframe, and they are paying the price now. Unfortunately, this is not an isolated example - it is happening every day. Living Supply Chains is unique in looking beyond the systems and technology of your company, to developing the role of people and behaviour in placing customer-focused supply chains at the heart of their enterprise. Based on John Gattorna's empirical research, Living Supply Chains shows you how to drive the design and management of your supply chains by starting with your customers and understanding their dominant buying behaviours'. In most cases, only 3 or 4 of these will be dominant' and should then be hardwired' into the organization's selling approaches, performance indicators and logistics operations. With quick' diagnostics and guidelines executives can use to rapidly identify and close performance gaps, logistics and supply chain management can finally move from the hands of the functional specialists, to the executives. Analysts and shareholders alike have recognized that taking back control of this vital area of business will have the most fundamental impact on future share price performance.

Table of Contents

  1. Copyright
    1. Dedication
  2. Praise for Living Supply Chains
  3.  
  4. Publisher’s acknowledgements
  5. Acknowledgements
  6. Preface
  7. 1. Supply chains are the business: Why not abandon conventional wisdom and discover the customer?
    1. Solving the problem of complex supply chains
    2. It’s the people, stupid
    3. Where did this transformation start?
    4. Watch the customer not the competitor
    5. Internal ‘forces of darkness’
    6. Organization design is the key
    7. Looking beyond conventional wisdom
    8. In search of dynamic alignment
    9. Behavioural forces at work in supply chains
    10. The four elements of dynamic alignment
    11. Time to re-invent the enterprise
    12. Responsiveness at last
    13. Living lessons
  8. 2. Customer conversations: All pathways lead to customers
    1. Confusion around segmentation
    2. Moving away from one-dimensional solutions
    3. Adding the missing behavioural dimension to supply chains
    4. From spaghetti bowls to conveyor belts – a dynamic perspective
    5. Zara – genuine dynamic alignment in practice
    6. ‘Triple-A’ supply chains are not here yet
    7. Beyond institutional segmentation
    8. Optimal pathways to customers
    9. Reverse alignment
    10. Now the picture is almost complete
    11. Living lessons
  9. 3. Implementing a multiple supply chain alignment strategy: Working with people to deliver the required responsiveness
    1. Cultural mis-alignment hinders performance
    2. Mapping internal values and cultures
    3. Climate factors
    4. Inducing change in organizations
    5. Framework for achieving organizational change
    6. Country cultures
    7. Dominant subcultures in the four generic supply chains
    8. Core roles within the supply chain function
    9. Changing the enterprise to improve alignment
    10. Crucial influence of organization design and process
    11. Changing the culture – now faster than ever
    12. Living lessons
  10. 4. Leading from the front: Converting customer insight into successful implementation
    1. Identifying leadership styles
      1. Traditionalist (A)
      2. Coach (I)
      3. Company Baron (P)
      4. Visionary (D)
    2. Change needs to be led not managed
    3. Achieving multiple alignment through superior leadership
    4. Leadership, vision and values
    5. Living lessons
  11. 5. Continuous replenishment supply chains: Where relationships matter most
    1. Customers are forgiving – up to a point!
    2. You want what, when?
    3. It’s all about culture
    4. Getting the subculture right
      1. 1. Organization design
      2. 2. Processes
      3. 3. Systems/information technology[10]
      4. 4. Key Performance Indicators (KPIs)
      5. 5. Incentives
      6. 6. Job design
      7. 7. Internal communications
      8. 8. Training and development
      9. 9. Recruitment
      10. 10. Leadership style
    5. Let’s mix it up a bit!
    6. Real or artificial ‘collaboration’
    7. Living lessons
  12. 6. Lean supply chains: Focusing on efficiency and lowest cost-to-serve
    1. Origins of lean manufacturing
    2. The relentless customer
    3. Response strategies
    4. Getting the culture right
      1. 1. Organization design
      2. 2. Processes
      3. 3. Systems/IT
      4. 4. Key Performance Indicators
      5. 5. Incentives
      6. 6. Job design
      7. 7. Internal communications
      8. 8. Training and development
      9. 9. Recruitment
      10. 10. Leadership style
    5. The price driver
    6. A revolution is on the way[8]
    7. A sure way to leanness
    8. Mixed supply chain logics
    9. Lean works
    10. Living lessons
  13. 7. Agile supply chains: Where quick response is paramount
    1. Watch out, they are hostile
    2. Being quick and cost-effective
    3. Getting the subculture right
      1. 1. Organization design
      2. 2. Processes
      3. 3. Systems/IT
      4. 4. Key Performance Indicators
      5. 5. Incentives
      6. 6. Job design
      7. 7. Internal communications
      8. 8. Training and development
      9. 9. Recruitment
      10. 10. Leadership style
    4. Mixed supply chain logics
    5. Shades of things to come
    6. Living lessons
  14. 8. Fully flexible supply chains: Where nothing is impossible
    1. Two types of dynamic flexibility
      1. ‘Business event’ fully flexible supply chain
      2. ‘Emergency response/humanitarian’ fully flexible supply chain
    2. It’s urgent, and we mean it
      1. ‘Business event’ fully flexible supply chain
      2. ‘Emergency response/humanitarian’ fully flexible supply chain
    3. Response strategies
    4. Getting the subculture right
      1. 1. Organization design
      2. 2. Processes
      3. 3. Systems/IT
      4. 4. Key Performance Indicators
      5. 5. Incentives
      6. 6. Job design
      7. 7. Internal communications
      8. 8. Training and development
      9. 9. Recruitment
      10. 10. Leadership style
    5. Mixed supply chain logics
    6. Living lessons
  15. 9. New business models for new supply chains: The miracle of ‘embedded alignment’
    1. The imperative of new operating models for next generation supply chains
    2. It has all been painfully slow!
    3. Outsourcing in the twenty-first century – getting it right
    4. The next generation of business models
    5. What’s so different about the joint services company model?
    6. Risks associated with forming a JSC
      1. 1. Founding partners
      2. 2. Ownership structure
      3. 3. Perceived independence
      4. 4. Secondment of best talent
      5. 5. Organization life cycle
      6. 6. Scope of operations
      7. 7. Financial engineering
      8. 8. Ability to meet performance milestones
      9. 9. Availability of best 3PLs
      10. 10. Excessive disruption
      11. 11. Culture
      12. 12. The risk of doing nothing
    7. Going forward
    8. Living lessons
  16. 10. Delivering living supply chains: A bridge to the future
    1. Here come the Exocets
    2. Global critical strategic issues facing supply chains of the future
    3. Is that a priority? Assessing where to put the effort
      1. Sustainability in supply chains
      2. Vulnerability of supply chains[14]
      3. Impact of oil prices on cost-to-serve
      4. Innovation, product design and product life cycles
      5. Future practice of outsourcing, in all its forms
        1. 1. Have a partnering approach to outsourcing
        2. 2. Use outsourcing to drive strategic change
        3. 3. Use risk-reward structures to motivate performance
        4. 4. Adopt a beneficial deal structure
        5. 5. Avoid outsourcing problems
      6. Learning to design and manage multiple organization formats
      7. The rise of genuine collaboration in supply chains
      8. Learning to manage inherent complexity in supply chains
    4. Monitor the rest
      1. Adoption of supply chain ‘principles’ by service organizations
      2. Tapping the talent inside and outside enterprises
      3. Coping with the national, regional and global spread of supply chain networks
      4. Adoption of the whole-of-enterprise mindset in managing supply chain operations
      5. Collaborating with the enemy
    5. Living institutions
  17. A final word
  18. Appendices
    1. 1A. ‘Quick’ dynamic alignment diagnostic
      1. Part 1 Instructions
        1. 1. Marketplace
          1. I. Competitive intensity
          2. II. Uncertainty
        2. 2. Business strategy
          1. III. Risk and reward
          2. IV. Strategic posture
        3. 3. Organization culture
          1. V. Focus
          2. VI. Control
        4. 4. Leadership style
          1. VII. Orientation
          2. VIII. Preference
      2. Part 2 Instructions
        1. ‘Quick’ dynamic alignment diagnostic
    2. 2A. Product/service category
    3. 2B. Multiple supply chains
    4. 2C. ‘Quick’ behavioural segmentation DIAGNOSTIC
      1. Exercise to discover the ‘buyer behaviours’ or ‘logics’ evident among your customer base
        1. Instructions
    5. 2D. ‘Quick’ diagnostic comparing ‘current’ versus ‘ideal’ strategies
    6. 3A. Typical culture maps
    7. 3B. Culture dimensions
    8. 3C. ‘Quick’ culture mapping diagnostic
      1. Culture mapping – self scoring
        1. Instructions
    9. 3D. ‘Evolutionary’ change
    10. 4A. Formulation of vision statement
      1. 1. Contextual
      2. 2. Business definition
      3. 3. Distinctive competence
      4. 4. Future indicators
        1. Examples of supply chain vision statements
          1. Myer Grace Department Store’s (MGDS) supply chain vision
          2. DHL Airways Express Logistics Vision
        2. Notes
    11. 5A. Supply chain relationship enablers
    12. 5B. Supply chain relationship inhibitors
    13. 5C. ‘Strategic partnering’ technique
      1. Customer/supplier loyalty – the key to success
        1. Raphael’s ladder of loyalty
      2. Upgrading the relationship
      3. Process methodology
        1. Step 1 Vision formulation
        2. Step 2 Environmental scan
        3. Step 3 Issues formulation
        4. Step 4 Issues identification and definition
        5. Step 5 Issues prioritization
        6. Step 6 Issues break-out
      4. Strategic partnership technique
  19. Notes
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
    9. Chapter 9
    10. Chapter 10
  20. Select bibliography
  21. About the Author
    1. Invitation for feedback from the reader