efficient supply chain processes are controlled but largely reactive. As a result, only one in three
companies feels that their supply chains are working well. The path forward is not clear.
Companies want supply chains to be more proactive, agile and aligned. The goal is to move past
supply chain defined as function — deliver, make, source or plan--to build strong supply chain
capabilities, but companies struggle. Most are stuck. The struggle is how to achieve the desired state
shown in Figure 2.
Figure 2. Desired State of Supply Chain Management
Defining the Supply Chain Response Agility is not free. The efficient supply chain minimizes cost. The goal is the lowest cost per unit.
Efficient, responsive and agile supply chains are three distinctly different supply chain designs. The
definition of supply chain excellence requires a choice.
This needs to be defined for each supply chain. Within an organization there are three-to-five flows
each requiring a different goal. The mapping should be from the customer back with the processes fit
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