Business transformation programs are getting steadily popular in the corporate world due to 
the dramatic change in business landscape over the past few years. Organizations are establishing collaborative forecasting processes, focusing on private level products, finding new sourcing networks, optimizing inventories and networks and applying supply chain segmentation so that complexity is reduced and there is a palpable improvement in the margin. Both fast moving and slow moving industries are using lean and agile process of supply chain to gain competitive advantage.
This whole Supply Chain Transformation Process can no longer be treated as an option but is imperative to business success. To increase your relevancy in the industry, you need to use this strategic mandate in your organization. It should be mentioned in this accord that around 70% of all transformation processes fail and thus Innovation in Supply Chain management needs to be valid, planned and well-researched.
It has been seen that the commonly failing Supply Chain Transformation Processes are due to the following reasons:
- Organizations are mostly not familiar with change transformation programs and don’t know what it takes to make them happen
- People-related aspects are either neglected or poorly managed, thus they are resistant to change
It doesn’t matter how stringent or evolving the supply chain transformation process is if the human side of change is not properly regulated. The company will get into losses and lots of people who slowly react to the change will lose their job. The success of innovation supply chain management is to use a systemic framework where executives will be able to understand what to expect engage with entire organization in the process and work hard towards supply chain transformation process to be successful.
Executive’s Support and Commitment
As the change is unsettling and difficult, reluctance sweeps in. Stakeholders will look up to CEOs and Senior Management for directions and answers. At this time, it is important as a leader to embrace changes and lead by example. Supply chain transformation requires intense cooperation and cross-functional collaboration among executive peers. You have to speak one voice and model to get everyone on the same page. Take interviews and sort out the executives on one line, so that they come out of their comfort zones and start working.
Plan a Comprehensive Supply Chain Strategy
Supply chain transformation process requires an excellent strategy which includes:
– Redefining strategy as changes occurring in global marketplace
– Translating strategy into practical, actionable improvement plans
– 3-5 year roadmap planning to guide transformation of supply chain and taking planning processes to next level
– Knowing how to achieve corporate goals
– Concentrating on opportunities that will lead to large improvement and deliver significant ROI overtime
– Eliminating all that is outdated and unnecessary
– Seeing that operations process and metrics go parallel along the supply chain
Learn how to develop a culture of innovation and process management in your organization from expert speaker Rich Sherman in a conference he is going to present on Thursday, August 21, 2014 and you will understand how to make your way through the difficult supply transformation process and how to develop a process improvement culture.
