Introducing Five Supply Chain Tasks

James B. Ayers is a supply chain management expert who works with manufac-

turers, service companies, and government agencies. In Handbook of Supply Chain

Management, 2nd Edition (Auerbach Publications, 2006), Ayers says that supply

chain managers should concentrate on five tasks:

» Designing supply chains for strategic advantage: Consider how your

supply chain can help you create value by operating better, faster, and

cheaper than your competitors. Think beyond just lowering costs, and

consider ways in which your supply chain can help you grow revenue,

innovate, and even create new markets.

» Implementing collaborative relationships: Consider how you can get

teams to work together toward a goal rather than compete for conflicting

objectives. If your sales team is trying to improve customer service by making

sure that plenty of inventory is available, and your logistics team is trying to

reduce inventory to lower costs, both teams are probably going to waste a lot

of energy.

» Forging supply chain partnerships: Consider how you can build and

sustain strong relationships with customers and suppliers. When companies

understand that they depend on one another for success — and perhaps

survival — working well together becomes a priority.

» Managing supply chain information: Consider how you share information

with others in ways that create value for everyone. When retailers share sales

data with their upstream partners, the manufacturers and distributors do a

better job of scheduling production and managing inventory. When manufac-

turers share data about commodity prices and capacity constraints, retailers

can do a better job of managing pricing.

» Making money from the supply chain: Consider how you can use your

supply chain design, relationships, partnerships, and information to capture

value for your company. In supply chains, a process change in one part often

creates value for someone else. Find ways to share this value so that everyone

has an incentive to work together

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