Survey 'Supply chain managers - who needs them?'
Supply chain management (SCM), regarded as a relatively recent management discipline, is slowly but surely attracting the attention of senior corporate executives. The strategic outsourcing of production and other operational tasks is therefore bringing many companies face to face with new challenges. How do you manage a complex cycle that transcends the company? How do you integrate it into your organisation? And what type of manager is best equipped to take on this task? With the support of the Goodman Chair for Logistics Management, Vlerick Leuven Gent Management School collaborated with S&V Management Consultants to examine these very questions in a two-part survey of more than 400 supply chain managers in Europe.
The new organisation
Companies that outsource production, logistics and other operational tasks do so on the basis of a well-considered strategy: focus on the activities that bring you the greatest added value. “This shift does have a significant impact on the organisational structure and business model of a company,” comments Prof. Roland Van Dierdonck. “Companies no longer ‘own’ the operational flow and it becomes one of their core tasks to manage this complex cycle, from raw material supplier through to sales to the end customer. Within this new business model, the person responsible for managing the supply chain is a pivotal figure with a strategic role.”
Integrating processes
The importance of process-oriented thinking is acknowledged in both the academic and the business world. Yet, in practice, this often conflicts with the hierarchical structure that is typical of some 90% of companies. “One crucial question is how to translate process-oriented thinking into roles and responsibilities,” concludes Steven Serneels. “Someone who wants to control the entire supply chain needs the cooperation of people in other jobs, but that has an impact on the structure of the organisation. So one of the aspects our survey concentrates on is the place that supply chain managers should be given in the organisation. Should we see their role as a new function and how important is that function?”
Building blocks
The first part of the survey looks at supply chain management in some 50 companies in three industries: pharmaceutical, chemical and food & beverage. “Within the operational flow, four ‘building blocks’ can be identified: purchasing, production, distribution and planning,” explains Steven Serneels. “These building blocks aren’t managed by just one person in each industry, however. Sometimes the supply chain manager is nothing more than a glorified logistics person monitoring one or two of the building blocks; in other cases he manages the whole flow and reports to the CEO. The job of supply chain manager can therefore be defined in different ways. Our aim with the survey is to examine what makes that job important or not so important. Does it have something to do with corporate strategy? With the type of company or industry? Is there a difference in supply chain maturity? Does it have an impact on company performance?
Who is the supply chain manager?
In the second part of the survey, Vlerick and S&V turn the spotlight on supply chain managers themselves. “This approach has seldom been used in previous research projects,” says Prof. Robert Boute. “Academics focus mainly on the processes, but there’s no clear picture of who supply chain managers are, their profile, their background, the skills they have or should have.”
The survey was still ongoing when this interview took place. Nevertheless, a few trends have already emerged. “Given that supply chain management has its roots in logistics, it comes as no surprise to learn that 90% of supply chain managers are male,” comments Prof. Ann Vereecke. “More surprising is the high score that supply chain managers give to the importance of soft skills. We’ve also determined that the impact of globalisation on the supply chain is becoming apparent. Knowledge of environmental matters, laws and regulations, and international business is identified as being important. Most SC managers are highly qualified and have been in their job for a long time. What’s strange is that few of them have done executive training in supply chain management. In view of the growing importance of their job, this is a crucial point to consider.”
Best practices
The idea of the survey is not just to collect a whole lot of facts and figures, but also to develop best practices. It may be interesting for companies to find out how they rate in supply chain management in their sector, but is an average score enough? Matching supply chain management with company performance should throw some light on the subject.
Keen to find out more about the survey?
Event: Supply chain managers - who needs them? 10 April 2008, Crowne Plaza Hotel, Antwerp
- Keynote speaker: Dr Paul Dittman, Director of the Office of Corporate Partnerships for Demand – Supply Integration Forums, University of Tennessee (Knoxville), USA
- Results of the “Organising for supply chain management” survey
- The evolution of the role and skills of the supply chain manager from an HR perspective
- The role of supply chain management and the supply chain manager from a corporate perspective
- Panel discussion on supply chain leadership with a panel of senior supply chain managers
Info:
Isabelle De
Ganck
Tel.: + 32 9 210 98 58
isabelle.deganck@vlerick.be
Registration closes 31 March 2008
Orator magazine - March 2008