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