A chain stronger than its links
By Raymond A. Kulwiec -- Modern Materials Handling, 7/1/1998
To many in industry, the concept of supply-chain management is still relatively new. But to consultant James Tompkins, Ph.D., it is already passe. In its stead, he suggests what he calls supply-chain synthesis.Delivering a keynote address at the recent Warehouse of the Future conference on innovative technologies in warehousing and distribution (6/15-6/17,'98, Phoenix), Tompkins said the problem with supply-chain management (SCM) is two-fold:
1) The term "management" connotes a static process of control, which however is intended to take place in a dynamic environment that requires continuous improvement and adaptability to change.
2) The emphasis is on optimizing the performance of the links within the chain, rather than on the overall performance of the chain in maximizing satisfaction of the ultimate customer.
In contrast, Tompkins says, supply-chain synthesis (SCS) involves the integration, unification, and bringing together of the supply-chain links to form a whole. The goal is optimizing the performance of the overall chain, rather than that of individual links. Obviously serious partnering is involved here.
And so the beat goes on, in the ever-growing vocabulary of business. Do we need another new buzzword, and another acronym? Maybe.
But one thing is clear: In today's environment, whether you are managing it or synthesizing it, you'd better be involved in the mechanics of the supply chain. No longer can your vision be limited to the four walls of your plant or warehouse. Instead, you must expand your borders to include your supplier's supplier and your customer's customer, in the ongoing quest to efficiently convert standing inventory to products on the move.
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