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World Class Supply ManagementRequires
World Class Supply Leaders
ByKeith Launchbury, CFPIM, CIRM, CSCP
Contents
Why is Supply Management so important? The Need for Professionals The Business World Today World Class Performance Supply Networks What is a Smart Supply Network The Talent Leadership Gap The Talent Development Model World Class Supply Leaders
Why is Supply Management So Important?
Because Supply Chain Problems
Are Front Page News!
Due to a shortage in airplane seats, Boeing has decided to park two 787 Dreamliners in the desert indefinitely.Two brand-new Boeing 787 Dreamliner aircraft destined for American Airlines will have to spend some time in the sun before the manufacturer hands over their keys. Bloomberg reports the two aircraft, fresh off the assembly line, are being parked in the Mojave Desert while they await a shipment of premium-class seats.Boeing personnel on site and Zodiac’s own team, progress is being made.”
Shortages
Production Issues
Product Recalls
Transportation Problems
Warehouse Fires
Disasters cause Disruption
And Opportunities
This is a job for a professional
People think Planning is Easy
In Reality
OSWO LEADS TO DEFROA
The Business World Today Is
Global
Dynamic
Connected
Informed
Risky
World Class Performance
The consistently demonstrated capability
of an organization to create and deliver
products and services that dominateglobal markets
World Class Operations
RealisticSchedules
EffectivePerformanceMeasures
ReliableResources
DependableProcesses
FlawlessTeamwork
FlexibleOperations
ProductiveMaintenance
ManufacturingResource Planning
LeanOperations
AccurateInformation
World Class is an Acronym
WatchingOperationalResultsLeap Dramatically
CompetitorsLoseAll SignificantSales
As
Customers Demand Perfection
The Right ProductAt the Right TimeAt the Right PlaceIn the Right ConditionIn the Right QuantityAt the Right Price
The Customers Bill of Rights
The Business Need
Supply Management is a critical component in all businesses today
Supply Management includes Sourcing, Procurement, Acquisition,
Production, and Delivery of Products and Services
The vital link between the development and commercialization of successful products
Supply Wastes
Unnecessary transportation
Double handling Damage in transit Damage in storage Mis-located products Mis-timed products Inaccurate counts Shrinkage Missed sales
Overproduction Overconsumption Excess inventory Unnecessary
packaging Needless movement Defective products Excess product
variety
Today’s Reality is Supply Networks
Supply Manufacturer Demand
Source: Oliver Wight Group
Vital Supply Leadership Issues
Creating agile global supply networks
Managing the increasing diverse needs of global supply networks
Using technology for competitive advantage
Demonstrating sustainability Achieving the triple bottom line
Creating Agility
Agility is the ability to sense, analyze, decide and act in a timely manner when market and business conditions change
Lean Supply Networks Need
FAST
FLEXIBLE
FLOW
Fresh Flowers delivered Fast
Managing Diversity
Dealing with different
Cultures Languages Beliefs Customs Laws Currencies Regulations Ethics Practices Time Zones
Enabling Technology
Information powers supply networks Supply chain event management Advanced optimization tools Retail level planning and optimization Electronic data transfer Automatic identification and data capture B2B and B2C ecommerce
Virtual Supply Networks
3D SCANNER3D PRINTER
Information is transmittedProducts are produced where needed
Resulting in drastically reduced transportation costs
Demonstrating Sustainability
The ability of the present generation to meet their needs
without compromising the ability of future generation to meet their
needs
The Triple Bottom Line
Financial
Environmental
Societal
The Talent Leadership Gap
Most business leaders today have come from one area of the business
These people are Business Function Specialists
Businesses need Leaders
Businesses require supply network leaders with a broad range of experience
These people are Business Process Generalists
Talent Development Model
Novice
Apprentice
Journeyman
Master Craftsman
Sensei
Craftsman
Skill Level
Time
Skill Level
Skill Level Model
Stoc
k cler
k
War
ehou
se M
anag
er
Plan
ner/B
uyer
Mas
ter S
ched
uler
Plan
ning
Man
ager
Supp
ly C
hain
Dire
ctor
Chief
Sup
ply
Office
r
Mas
ter O
rche
stra
tor
0
10
20
30
40
50
60
BlackBrownRedPurpleBlueGreenOrangeYellow
Skill Level 1 Supply Operative
Stock picker Material handler Order packer Equipment operator Cycle counter Forklift driver Warehouse associate
Skill Level 1 Supply Operative
Qualifications Can read, count
and move stuff around
Can use material handling equipment
May need a drivers or fork lift truck license
Skill Level 2 Supply Lead
Warehouse supervisor
Cycle count analyst Transportation
coordinator Supply chain
supervisor Traffic supervisor Distribution center
supervisor
Skill Level 2 Supply Lead
Qualifications Good with people Good with numbers Completed
Introduction to Supply Management Course
Skill Level 3 Supply Planner
Material planner Buyer Purchasing agent Planner/Buyer Production scheduler Distribution planner Logistics specialist Supply chain analyst
Skill Level 3 Supply Planner
Qualifications Business
degree or experience
Working towards Certification in one related professional program
Skill Level 4 Supply Professional
Senior planner Supply chain manager Master scheduler Forecast analyst Contract manager Business analyst Warehouse manager
Skill Level 4 Supply Professional
Qualifications Business degree or Business experience At least one Certification in a related
professional programs Working towards a related Masters Degree
Skill Level 5 Supply Manager
Planning manager Distribution
manager Logistics manager Demand manager Product manager
Skill Level 5 Supply Manager
Qualifications Business degree and
Business experience Multiple Certifications in
related professional programs
A Masters Degree in related area
Good working knowledge of advanced supply network design and operation
Skill Level 6 Supply Director
Supply chain director
Sales director Marketing director Production director Customer service
director Information
technology director
Skill Level 6 Supply Director
Qualifications
Business degree
Multiple Certifications in related professional programs
Masters in Supply Chain Management
> 5 years experience in Supply Management
Demonstrated application of the knowledge and use of advanced supply network design, and information technology
Skill Level 7 Supply Executive
Chief Supply Officer Chief Customer Officer
Skill Level 7 Supply Executive
Qualifications Business degree Multiple Certifications in related
professional programs Masters in Supply Chain Management >10 years experience in Supply
Management Excellent working knowledge of
advanced supply network management
The Master Supply Orchestrator
Leading the business in the application of all the resources in the intelligent, informed and agile supply
networks to ensure sustainable future success and competitive advantage
Skill Level 8 Master Supply Orchestrator
Capable of designing, and building smart, flexible, adaptive and sustainable Supply Networks
Knows and understands the capabilities and constraints of all the resources in the Supply Network
Knows how to make the most effective use of all supply network resources
Excellent skills and knowledge in the successful integration of organizations, people and technology for competitive advantage
Supply Professionals
Deliver Excellence