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Think Supply Chain

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Leading the supply chain conversation

 

Join the supply chain conversation with Sharon Rice, executive director of the APICS Educational and Research (E&R) Foundation. Explore topics including the role of supply chain planning in corporate success, how sustainability and corporate social responsibility enable the bottom line, global supply chain risk management, and more. Comments are welcome. 

    Mind the Strategy Gap

    by Sharon Rice, APICS E&R Foundation Executive Director | Jan 06, 2015

    Your comments after my last post, which I greatly appreciate, reminded me of an interesting meeting I had a few years ago. The group was discussing strategy and linkages between corporate strategy and supply chain and operations strategy. After the meeting was over, I asked Robert Vokurka, PhD, CFPIM, CIRM, CSCP, 2008 chair of the APICS board and a professor of operations management at Texas A&M University, to help me understand the disconnect. As he explained it, we ended up drawing a continuum on the white board that looked something like this:

    Think Supply Chain

    In organizations where a gap exists, it is likely that a combination of the following is happening: corporate strategy is not being effectively communicated across all levels in the organization and staff on the execution side of the business is not proactively seeking to understand corporate strategy and how it impacts what they do.

    Imagine the many decisions made every day by supply chain and operations management professionals primarily responsible for execution. To whatever extent a gap exists between current corporate strategy and execution, it creates risk and loss of opportunity. Yet, the negative impact of the gap is a shared responsibity of corporate leaders, managers, and individual employees. How do you mind the strategy gaps?

    • How do we ensure that employees at all levels of our organizations are making the best decisions based on corporate strategy?
    • How does one proactively gather the information needed to be certain that his or her work aligns with corporate strategy?
    • What does it take to have confidence that all policies, processes, systems, and staff are aligned to achieve corporate strategy?

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    Test post

    by Sharon Rice, APICS E&R Foundation Executive Director | Jan 06, 2015
    Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

    It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum

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    Nurturing the Supply Chain Farm Team

    by Sharon Rice, APICS E&R Foundation Executive Director | Jan 06, 2015

    Last week I had the opportunity to spend time with executives of small and mid-sized manufacturing companies in the greater Louisville, Kentucky area. I was invited to speak at the Metro Manufacturing Alliance (MMA) annual summit at Ivy Tech Community College in Sellersburg, Indiana. My speech focused on workforce development and how important it is for small and mid-sized manufacturers to invest in developing a “farm team” of talented workers who can contribute to the long-term success of companies.

    After the conference, I stayed for a smaller luncheon gathering of CEOs. Here’s where my fellow presenters and I were able to really get down to the heart of the matter. I learned:

    1.  CEOs of small and mid-sized manufacturers are first and foremost members of their communities. They know their workers, their families, and their school systems.
    2. They are concerned that the education system, especially at the high school level, focus primarily on steering students toward college instead of the trades, even though skilled trade workers can make as much or more money than the average college-educated worker over their lifetimes.
    3. These CEOs are committed to their workers and are willing to make investments to ensure their success at their companies, but they also struggle with worker retention and want to know that investments they make are going to pay a return.
    4. They are working creatively to develop programs, such as apprenticeships, that train or retrain workers to have fulfilling careers with their companies.
    5. They are not only concerned about the skilled labor shortage, but also succession planning and developing management talent that can ensure the sustainability of their companies.

    As we spoke, I was impressed by the sincerity and earnestness of all the people sitting around the table. I believe, with the help of organizations like the MMA and One Southern Indiana, they will be able to make something happen that will benefit their communities and their companies. Then I had to wonder, what is the role that the APICS Foundation should be playing? After all, education, like politics, is local.

    Investing in Supply Chain Education and Training Programs

    I come from a family of educators and am part of a generation of Americans raised to believe that college is the terminus of formal education. So I get a little uncomfortable when participating in discussions that suggest that all young people should not aspire to go to college. But my husband—the guidance counselor—tells me I am missing the point. True success, he says, depends on discerning the right path for the student based on their abilities and sensibilities. This is no easy task when government and parents are inclined to measure success by the number of college applications accepted. Add to that the enormous caseloads for guidance counselors and their inability to really know their students, and it is no wonder we tend to seek cookie cutter approaches to steering students in the directions of their futures.

    Organizations such as APICS and the APICS Foundation can support local efforts by helping to build national and international awareness among teachers, guidance and career counselors, parents, and students about the many opportunities that exist in the world of manufacturing. Some of these opportunities can be found in trade and others in management. Regardless, they both require education and training beyond high school. They both can lead to fulfilling, life-long careers in manufacturing.

    How can we start to change society’s views of success? What can APICS do to nurture the “farm team?”


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    PwC Supply Chain Sustainability Research

    by Sharon Rice, APICS E&R Foundation Executive Director | Apr 04, 2014

    Join the Supply Chain Conversation at the Think Supply Chain blog - Jonathan Thatcher APICS Research DirectorHow do organizations actually increase their supply chain sustainability maturity? How much progress do companies see? What barriers are in the way?

    Plenty of research exists—from academia, consultancies, and research groups—that addresses these questions. Typically such research will include surveys of senior managers that captures their sustainability plans and goals. But less common is research that analyzes the supply chain and operations management practitioner. And even more rare is research that looks at both the practitioner and senior managers—research that identifies gaps in management thinking that leads to different perceptions, priorities, and barriers to advancing supply chain sustainability.

    This year, APICS and PwC, a leading consulting firm, have combined forces to study these less-common, yet vitally important issues. It is an excellent match—APICS has an impressive network of practitioners and research, and PwC has done extensive research from the senior management perspective. Together, we focused on paying close attention, in survey and analysis terms, to both senior managers and supply chain and operations management professionals. By comparing and analyzing their responses, a clearer picture emerged of the root causes that slow sustainability efforts in supply chain strategy.

    Initially, the opportunity to produce such unique research came in 2011, when APICS began studying the difficulties practitioners face in advancing sustainability maturity. In 2012, follow-up research suggested that one major challenge was the enterprise’s differing perspectives on supply chain sustainability strategies, expectations, and planning and execution.

    Discovering supply chain sustainability trends

    The combined APICS-PwC research  revealed gaps on a number of fronts. For example, many executives and senior managers mentioned the importance of long-established sustainability trends and policies at their organizations. However, 53 percent said they believed their employer’s sustainability history was unknown to them, or its history was less than five years old. Clearly, different perspectives about the history of sustainability were in play.

    The combined research also revealed that the practitioner and senior manager perceive different barriers. The existence of supply chain sustainability strategy is one example. Only 5 percent of executives and directors reported that they had no supply chain sustainability strategy, while 21 percent of practitioner managers reported having no supply chain sustainability strategy. Further, practitioners said that leadership does not provide mandates, incentives, and resources to turn sustainable strategies into action. Other respondents added that significant confusion existed about the scope and goals of supply chain sustainability. In sharp contrast, 55 percent of executives stated that supply chain strategy exists and is fully communicated across the organization, or that supply chain strategy exists but has not yet reached all levels of the organization.

    Another key difference for the two groups was in realizing value from supply chain sustainability. The survey included questions that asked for respondents' perception of company performance. Two thirds of companies that reported they did not realize value from supply chain sustainability also stated that they had no practical measurement or tracking in place for supply chain sustainability initiatives. In contrast, only 22 percent of companies who did report realizing value also reported they had no practical measurement or tracking in place.

    Ideally, both senior managers and supply chain and operations professionals should work toward increasing sustainability with the use of objective, practical, and insightful tracking and measurement resources. These two groups can more closely align their perspectives. Following are several ideas to consider:

    • A communication or feedback path should exist between management levels to ensure organization-wide practice is on target, particularly where practitioner responsibilities are key. The practitioner must be able to work through prioritization, conflicts, and master planning and scheduling. Keep the practitioner updated on detailed strategy. How the practitioner executes supply chain sustainability strategy influences sustainability practice elsewhere in the organization.
    • There must be effective and practical education and training to ensure best practices exist throughout the organization. Shared use and reporting from tools, systems, terms, metrics should be the result—where education is backed up with incentives, real-world use of resources, and best practices.
    • Help ensure executives and directors provide support for staff ideas. Executives and directors say they are enthusiastic about staff ideas toward sustainability and believe there are more metrics and goals in place, but managers and their teams see it differently. Fewer managers report getting support from senior management for implementing staff ideas.

    Considering these ideas may help broaden engagement by breaking down silos between senior managers and supply chain and operations management professionals. Remember, effective sustainability efforts do more than help workers feel good, they have the potential to improve brand image, encourage innovation, promote cost cutting, and comply with government regulations.


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    Supply Chain Professionals: Have You Sharpened Your Saw Recently?

    by Sharon Rice, APICS E&R Foundation Executive Director | Apr 04, 2014

    Join the supply chain conversation at Think Supply ChainThis year, I made it a priority to attend more conferences. Since I started working with APICS in 2007, I skipped my own industry conferences to immerse myself in the world of supply chain. I needed to learn about supply chain and why it is critical to business success. I needed to meet supply chain professionals. I needed to understand the various organizations that serve you in the APICS community. Additionally, I still spend a lot of time on the road meeting with APICS partners and customers to understand their perspectives and needs. In the office, my days are packed with managing planning, budgets, people, and more. I have a busy work and personal life, and I know many of you relate.

    I rationalized my nonattendance by telling myself that APICS is my best teacher—that what I was learning on-the-job is better than any education I could receive at a conference. Personally, I am travel weary. I didn’t want to be away from home to attend a conference. Plus, I am 54 years old, and I have been working in associations for 27 years. I thought: How much more could I get from a conference?

    Then, in January, I became executive director of the APICS Foundation. My new role required me to stretch as an association professional in ways I had not before. I want to be able to meet the new expectations now that I serve the Foundation’s board. I want to lead my staff into new areas and take advantage of the new opportunities that the Foundation is bringing APICS.

    Conferences are a unique opportunity for supply chain professionals

     

    So, earlier this year, I signed up for a one-day seminar on governance. Surprisingly, I loved it! I learned not only from the presenter, but from the others in the room. It was a unique event where association executives and association board members interacted with each other and shared ideas. Now, I am doing some things differently because of that experience. I relate to people differently as well because I gained perspective. I am traveling to another association industry conference in November, and, now, I am really looking forward to it.

    Initially, attending the association seminar wasn’t entirely my idea. I was talking to APICS CEO Abe Eshkenazi, and he advised me to network with my association peers. He suggested that I needed to be exposed to other association leaders and organizations outside of supply chain. He was right. Now, I see the value in his suggestion.

    When I first read Stephen R. Covey’s The Seven Habits of Highly Effective People, I thought the seventh habit, sharpening the saw, was listed last because it was the weakest. It seemed to be there because seven habits is more aesthetically pleasing than six. I was young, and I didn’t need to focus on balance and renewal. Now, I recognize the value in that seventh habit.

    There are many things in our busy work lives that drain energy, weaken our cognitive abilities, and cause us to develop unproductive routines. Taking time away enables us to learn from people in different companies and industries, test ideas, and widen our networks of people—especially those whom we meet in person.

    For the last four months, I have spent a lot of time talking about the benefits of attending APICS 2013 from a content perspective. I want to urge you also to consider the professional development arc that includes leaving the office, hearing fresh ideas, meeting new people, and having time to think about applying this knowledge at work and in life. The development arc ends when you return to work, excited by what you have learned and whom you have met, and eager to try something different at work.

    That’s my story. What’s yours? Are you taking the time you need to renew and refresh yourself professionally? It’s not too late. Sign up for APICS 2013 today. And, don’t forget to budget the conference experience for next year.

     


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