As perceived by those in the supply chain organization, the greatest gap in alignment is between the operations and sales functions. It is typically both important to the organization and performing poorly against business requirements. In qualitative interviews with companies, we find three contributing factors: incentives and aligned metrics, lack of process agreement, and gaps in technologies.
Figure 4. Organizational Alignment Importance vs. Performance (Supply Chain View)
Three Techniques Improve Organizational Alignment The term “supply chain” has unfortunately become politically charged within an organization. When it means a “supply chain function” versus an end-to-end process, the organization loses an opportunity to gain business advantage through greater organizational alignment. This is both within the enterprise and in the extended value network. In this research, we find that a focus on three elements can improve alignment. Have a Clear Definition of Supply Chain Strategy: Clearly Define the Term “Agility” The terms agility, responsiveness, flexibility, and efficiency are bandied about. They lack definition. Leaders say them in rapid succession assuming that they make sense. However, they do not. When these terms are “ambiguous,” lacking definition for action, there is an opportunity cost to the organization to better align. An organization cannot be responsive (short cycles), agile (same cost, quality and customer service given demand
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Supply Chain Insights LLC
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