15 CONTRACT MANUFACTURING: THE VALUE OF A NETWORK BASED APPROACH | 2024
15
Figure 9. Organizational Alignment for the Brand Owner
Supply Chain Planning & Manufacturing Manufacturing and Procurement Sales & Marketing Supply Chain Planning and Procurement Supply Chain Planning and Finance Finance & Operations (Make, source, and deliver teams) Sales & Operations (Make, source, deliver) Sales and Finance Operations and IT Finance and IT Marketing and Finance Marketing and IT Sales and IT Corp. Social Responsibility(CSR)/Environmental Social Governance (ESG) & Operations New Product Development & Distribution
22%
24%
22%
16%
14%
3% 5.2
19%
24%
24%
16%
5%
11%
5.0
8%
32%
22%
30%
3% 5%
5.0
16%
14%
38%
16%
11%
5%
4.9
8%
27%
19%
38%
8%
4.9
3%
35%
24%
19%
11%
8%
4.8
14%
19%
27%
19%
8%
11%
3%
4.7
3%
30%
24%
19%
19%
5%
4.6
8%
24%
27%
19%
8%
8% 5%
4.6
5%
22%
22%
35%
11%
5%
4.6
24%
32%
16%
14%
8%
5%
4.4
22%
14%
38%
14%
8%
5%
4.1
19%
24%
27%
11%
14%
5%
4.1
19%
16%
30%
16%
5%
14%
3.9
24%
14%
14%
24%
19%
14%
3.8
Extremely Important
7
6
5
4
3
2
1
Not at all Important
Source: Supply Chain Insights 2024 Q13. How aligned do you believe that these same pairs of teams are at your company today?
To highlight the importance of a system of record for a network, the average company purchase order changes 3.5 times. Without a system of record and the blackhole effect of 2.3 days, it is hard for the parties to align. The difficulty in coordination is illustrated in Figure 10. Here, we depict the demand for a new product launch as a river. When a role is clear on the demand flow, the river is depicted as blue,
but the organization is unclear when the river turns brown. New product launch distribution is especially problematic due to high demand and supply variability, usually coupled with low volume flow. The syndicated data sources—IRI and Nielsen for consumer products—are of little use due to the data latency issues. There is no substitute for the use of channel data and network automation.
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