17 SUPPLY CHAINS TO ADMIRE | 2023
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teams. Many do not understand how their work can drive growth. Unfortunately, companies stuck in a cost-focused paradigm struggle with significant horizontal organizational alignment gaps between operations and commercial teams. To break the cycle, use this report to highlight the opportunity and take steps to drive growth. 5. Effectively Manage Complexity. We heard a consistent theme when we interviewed the leaders in past reports. Increasing product and customer complexity degrades value. In an organization, there is good complexity and bad complexity. Good complexity drives growth with minimal impact on the performance factors on the Effective Frontier, while bad complexity degrades performance. Maximize the growth opportunity with good complexity and eliminate bad complexity. 6. Focus on Building Value Networks. While many of the companies in this report could leverage power in the network to be a powerbroker in the industry to redefine outside-in processes and build effective value chains, 95% of companies accept the limitations of the inside-out supply chain. Over the last decade, only TSMC and Walmart
successfully executed value network strategies. In this decade, only Maersk successfully built a value network. The efforts are few and far and few between. The next frontier of supply chain effectiveness lies in the bi-directional orchestration of process flows with trading partners. 7. Learn from Other Industries. Use a Steady Hand and Focused Leadership to Drive Improvement. Over the years, when we have interviewed the Supply Chain to Admire winners and asked, "What do you think drove improvement?" They responded, "The avoidance of fads and a steady focus on supply chain strategy." The Story of Supply Chains to Admire award winners is not a story of consultants driving a project for change transformation. Nor is it a story of technology implementation. Instead, it is a story of supply chain leadership driven by a focused internal team over many years.
1 https://www.slideshare.net/loracecere/driving-supply-chain-excellence18june2015final
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