Outcome-Driven Supply Chains: Towards a New Paradigm of Supply Chain Management

Supply Chain Management is changing from strategically decoupled/price-driven to strategically coupled/value driven. This change is forcing managers to rethink how they design and manage supply chains. This presentation introduces six “pure” outcomes that supply chains can deliver: “efficiency” (a combination of cost, delivery and quality), responsiveness, sustainability, security, resilience, and innovation. In practice, effective supply chains are often hybrids that reflect various combinations of these six “pure” designs. The presentation will explore these outcomes, their impact on supply chain design, present guidelines for judging when various types of supply chain outcomes should be mixed and, as importantly, when they should not be.

Introduction
Supply Chain Management is changing from strategically decoupled/price-driven to strategically coupled/value driven. This change is forcing managers to rethink how they design and manage supply chains.  This presentation introduces six “pure” outcomes that supply chains can deliver: “efficiency” (a combination of cost, delivery and quality), responsiveness, sustainability, security, resilience, and innovation.  In practice, effective supply chains are often hybrids that reflect various combinations of these six “pure” designs.  We explore these outcomes, their impact on supply chain design, present guidelines for judging when various types of supply chain outcomes should be mixed and, as importantly, when they should not be.

Session Objectives:
    To introduce the concept of the outcome-driven supply chain;
    To identify and discuss the six outcomes around which the effective and efficient supply chain is built (efficiency, responsiveness, security, resilience, sustainability, and innovation);
    To discuss the impact of these outcomes on supply chain design, management, and performance measurement; and,
    To explore the implementation of the outcome driven supply chain (obstacles and enablers).

Session Outline:
Until recently, the major benefits offered by typical supply chain management have primarily been reduced costs, reliable or faster delivery and improved quality.  Increasingly managers are now recognizing that these three advantages are imperative but not absolute and are not always the main features of new emerging supply chains.  The new supply chain is based on creating value for the customer, is linked to the firm’s strategy, and is tied to the goals of its supply chain partners.  Currently, managers are rethinking supply chain design to support this new view of the supply chain.  We introduce a new framework for supply chain design and management based upon findings and insights drawn from the SCM 2010 and Beyond Research Initiative.  At the heart of this framework is the notion that supply chains should be designed to deliver certain outcomes.  We argue that there are six “pure” outcomes that supply chains can be designed to deliver: “efficiency” (a combination of cost, delivery and quality), responsiveness, sustainability, security, resilience, and innovation.  In practice, however, effective supply chains are often hybrids that reflect various combinations of these six “pure” designs.  We explore some of the factors associated with the six “pure” supply chains, present guidelines for judging when various types of supply chain outcomes should be mixed and, as importantly, when they should not be.  The guidelines presented in this presentation should help managers and researchers think beyond the notion that supply chains are only a tool for cost reduction.

Benefits to the participants:
    To learn about the six basic outcomes that are now driving the new generation of supply chain design.
    To understand the implications of these six outcomes for effective supply chain design and management.
    To learn how to apply the lessons introduced in the session to their own supply chains.

Source: http://www.etracc.net/conference/conference_speakers.php?s=2&sp=73&lang=en