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The New Supply Chain Agenda: The 5 Steps That Drive Real Value
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About The New Supply Chain Agenda: The 5 Steps That Drive
Product Description Is your company delivering products to customers at the right time, place, and pricewith the best possible availability and lowest possible cost and working capital? If not, you’re probably alienating your customers and suppliers, eroding shareholder value, and losing control of your fixed costs. These dangerous mistakes can put you out of business. In The New Supply Chain Agenda, Reuben Slone, J. Paul Dittmann, and John Mentzer explain how to reinvent your supply chain to avoid those errorsand turn your supply chain into a competitive weapon that produces unprecedented economic profit for your firm. Drawing on a wealth of company examples, the authors show how to activate the five levers of supply chain excellence: Putting the right people with the right skills in the right jobs Leveraging supply chain technologies such as system optimization and visibility tools Eliminating cross-functional disconnects, including SKU proliferation Collaborating with suppliers and customers to generate a seamless flow of information and supply chain improvements Managing supply chain projects skillfully Apply the steps in this book, and you build a supply chain that delivers as it shouldwithout leaving money on the table. Review SHORT! CONCISE! and DYNAMIC! ----- must reading by all those working in the supply chain. --William G. Pagonis, Lieutenant General, U.S. Army (Ret), and former EVP of Supply Chain and President of Sears Logistics Services Grounded on an extensive array of company data, the supply chain excellence advice in this book are of great value to supply chain professionals. --Hau Lee, Director of Global Supply Chain Management Forum, Stanford University This work captures the fundamental principles for business success that can apply to any industry. This book offers a universal business strategy, a roadmap that companies would do well to follow." --Mike Eskew, Former Chairman & CEO, UPS A great summary of how to leverage the supply chain to create economic value. The action steps at the end of each chapter are especially helpful. --Steve Harmon, VP of Global Transportation for Kimberly Clark Corp. The book captures the fundamental principles for business success that can apply to any industry. This book offers a roadmap that companies would do well to follow. --David B. Speer, Chairman & CEO, Illinois Tool Works Inc About the Author Reuben E. Slone is Executive Vice President of Supply Chain at OfficeMax. He has published several articles on supply chain management in Harvard Business Review. J. Paul Dittmann is Director of Corporate Partnerships at the University of Tennessee and Managing Director of the Demand/Supply Integration Forums. John T. Mentzer is a professor of marketing and logistics at the University of Tennessee. Excerpt. © Reprinted by permission. All rights reserved. Driving Shareholder Value with Your Supply Chain By Reuben Slone J. Paul Dittmann John T. Mentzer Introduction You are shooting yourself in the foot. If yours is like the vast majority of the hundreds of companies we’ve examined, then you have incentives in your organization that drive down shareholder value, waste money, and hurt customers and suppliers. Think for a moment about how your sales team and your product design team are incented. We can virtually guarantee that the sales team is encouraged to maximize product revenue and the product design team is encouraged to drive down product cost. Makes sense, right? How else would you do it? Now stop to think about what those incentives really do to your costs and customer service. Those incentives encourage product and SKU proliferation; the resulting complexity drives up costs in purchasing, raw materials handling, manufacturing, warehousing, and distribution, not to mention the toll it takes on profitability because of stock-outs of hot products and excess inventory of slow-selling ones. That’s what we call shoot
