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Save the Cheerleader, Save the Supply Chain? September 12, 2007

Posted by David Fontaine in Analytics and Business Intelligence, News.
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With all due respect to Mukund, he doesn’t possess what I’d call a vast pop culture library. I mention this because I was drawn to the tag line of last season’s hit NBC series “Heroes” — “Save the Cheerleader. Save the World” — when thinking about my new blog entry. Needless to say, this pop reference didn’t resonate very well. (Mukund: check out the official site), and you are probably wondering, “Dave, what does that have to do with the price of supply chain in China?” Here’s the point.

A friend of mine turned his nose up at the possibility of pursuing a position with a supply chain focused technology company during a recent conversation. Not cool enough, or something to that effect. But it takes just one look at a recent Investor’s Business Daily article to reaffirm the fact that Supply Chain is hot!

A 2006 AMR Research publication titled “Supply Chain Saves the World” underscores the critical importance of automating global business communities to remain nimble enough to react to changes in the supply chain (ideally before they have a real business impact) and to retain or improve a company’s competitive advantage.

My friend might argue that AMR overstated the importance of optimizing supply chains and extended business communities. He would be WRONG!! Look beyond IBD and AMR, and you’ll see continued indicators that this stuff (a technical phrase) is critical, important and, dare I say, sexy.

Take a look at a recent case study with On Semiconductor. You can see how their company is currently focused on removing complexity out of its supply chain as a way to enable frictionless business transactions and gain greater share of customers’ wallets. Blogs are only as compelling as the conversation and debate they drive, so I’m interested in your take on the topic:

  • How critical are your supply chain operations?
  • Is my friend one of the uninformed folks who doesn’t get it?
  • How have you been a supply chain hero?

AMR Research was kind enough to send me several copies of their book, “Supply Chain Saves the World,” with contributions from Bruce Richardson, Kevin O’Marah and Randy Weston. If you’re one of our best commentators, we’ll send you a free copy of the book for getting engaged in the discussion.

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Comments

1. Craig - October 19, 2007

There is no denying that the supply chain is important to many of us…. and in some cases, the supply chaing could, arguably, be used to “save the world”…. but I guess it all comes down to semantics….

While improvements to the supply chain can vastly improve the world from a corporate or business line of thinking, it could be overplayed in that this “saving” of the business world has some impact on the rest of the world – but this is akin to saying that advancements in the virtual world are akin to advancements in the real world….

But a valid point is made in that saving the business world CAN lead to advancements in the real world…. by simplifying and improving the supply chain, we can see improvements in the world of many of the people that are touched by that supply chain – from the consumer through the retailer through the distributor to the manufacturer…. and then even to the manufacturer of the parts and pieces of the consumer product, as well….

Through advances in the supply chain, retailers can be sure to have the perfect widget for their customers – all because somebody realized the importance of the supply chain….

World altering concepts… if not quite world saving….

2. David Fontaine - October 19, 2007

Great comment. I think we have a winner!

I have a copy of the AMR Research supply chain book if you would like an interesting read. If you are interested, send me your contact details at david.fontaine@inovis.com.

Supply and Demand and the increasingly global and near-realtime need to respond to geographical realities (political, nature, business or otherwise) are all connected.

Current case in Atlanta, GA where I live and work. Worst historical drought in recorded history. Lake levels (major sources of water for the city) are at about 85 day levels. National attention because Congress is getting involved and Atlanta is a top 10 metro area. Think about potential business and personal impact as companies located here might have to alter production line schedules to conserve water, suppliers shift movement of bottled water (for example) from the Midwest to Southeast……

I would proposed that this response, (in a worst case scenario in this case study….or in response to natural disasters, etc) is about both altering and saving.

There is a reason that keynote speakers at AMR’s Executive Leadership Conference and Supply Chain Exec Forum have included President Bill Clinton, Secretary of State Colin Powell and this year’s speaker, Senator Bill Bradley. Supply Chain is critical.

As the world continues to shrink, Supply and Demand Chains will need to become more and more dynamic and nimble to deal with these interconnections.

Again, thanks for reading. A fabulous point.

3. Frank Smith - October 19, 2007

You guys need to read the book, The World Is Flat, by Thomas Friedman.

His theory is that if countries trade with each other they are less likely to go to war with each other. They become dependent on each other on a daily basis. That link is the supply chain!

I think the increasing of trade in the world is one thing that can change relationships and feed more people and reduce wars. It is harder to declare war on someone who is supplying your goods.

I hope this is the case.


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