Masters Degree

To succeed going forward, supply chain professionals must become masters of three forces: globalization, business strategy and execution, and information systems.

By Bill Copacino -- Supply Chain Management Review, 4/1/2007

Supply chain professionals are clearly facing more demanding challenges in a rapidly changing world. Many are rising to the challenge and have made profound contributions to their company’s success, positioning supply chain management as a critical differentiator for their company. I see three important factors influencing the supply chain agenda, and I believe that supply chain managers must become masters of each.

First, and most important, is the force of globalization. As companies expand their global sourcing and marketing activities, their supply chains are becoming increasingly extended and more complex, with many more risks to manage. Cross-border operations call for new knowledge and capabilities. Security and quality of the product, data, and transactions become key requirements. As manufacturing costs are reduced through global sourcing, supply chain costs increase and become more important to the business. Managing inventories in transit and at multiple stocking points requires new tools and better skills. So the supply chain manager of the future will need to be experienced in global commerce and be able to manage both complexity and risk.

Second, supply chain management will continue to become a much more important business function. Historically, supply chain management was seen as important, though not critical to a company’s success. There is compelling evidence today that supply chain management has become a much more important, and in many cases, a critical strategic and competitive variable. In fact, it is central to the source of competitive advantage for many companies. Therefore, the supply chain manager of the future will need to be a strategic thinker as well as a great executor—contributing to the formation of the company’s overall competitive strategy, while crafting a supply chain strategy that is aligned with overall competitive goals and risk tolerances. This evolution will place many more demands on our supply chain professionals going forward.

Third, developments in information systems, communications, and process technologies have been unparalleled in comparison with any time in my memory. After a period through the 1990s in which we saw many failed implementations and disappointing returns on too many technology investments, we have entered a new era of value delivery from information systems technology. And this development is transforming the supply chain function. Collaborative planning, RFID, advanced track-and-trace capabilities, multi-echelon inventory planning and optimization, event management and other visibility tools, transportation planning, routing and scheduling and execution tools, service-oriented architectures, new tools for easier data integration, and scores of other advances have changed the economics of supply chain management. Supply chain managers must understand and leverage technology to be successful.

I believe the next decade will be a very exciting time for supply chain practitioners, and the opportunity for our profession will be unlimited. However, those leaders who master the forces enumerated above will be in a position to contribute enormous value, as well as share in those rewards.