The starting points of every supply chain transformation can be various clients. These can include rationalization of the supply chain (consolidation of the footprint), a post-merger integration or carve out, insourcing/outsourcing decisions, developing a more professional supply chain organization, etc. Developing the right supply chain strategy and solution is only one side of the equation, making it happen is a different one. Many supply chain transformations either fail due to a lack of a proper vision or due to poor project management, implementation planning and execution.

Transforming the supply chain

Transforming the supply chain requires identifying and implementing the right supply chain strategy. It is crucial to have the end game and business case well defined and to follow an excellent change management process.

Leaders must continuously strive to create organizational buy-in while also considering the impact of their plans on employee behavior and the required competencies. In such a supply chain transformation process, key decision makers need to be identified and empowered. Creating the right skills and attitude, and rewarding employees to motivate them to change with the organization, is important. This includes addressing any skills and attitude gaps, alternative metrics and introducing rewards to motivate change, ongoing performance and proper incentives for the future KPIs and metrics.

Supply chain transformation typically also requires a cultural change. Articulating a clear future vision to the entire organization and putting in place a strong communication plan is key. Supply chain transformation can be achieved not only through large top down implementations but can also be realized by executing smaller scale pilots. These pilots can be used to demonstrate the effect of the supply chain strategies in practice, to apply learnings and if required adjust the game plan going forward.

Lean implementation management

The components of lean implementation management cover People, Processes and Systems.

The people aspect of lean implementation covers:

• Accountability
• Ownership
• Common Culture
• Involvement
• Alignment
• One company – One voice
• Management of expectations

The process aspect of lean implementation covers:

• Common operating principles
• Standardisation
• Sharing Best Practices
• Avoid complexity
• Risk and Mitigation

The system aspect of lean implementation covers:

• Minimizing complexity
• ICT is following / not leading
• Focus on working software
• Minimize work arounds
• Optimize in later stage

Supply Chain management with PMO function

Strong project management is crucial in large supply chain transformation or implementation initiatives. Many companies have established a PMO function.

Key in such PMO function or in project management

• Developing and maintaining a project charter including communication structure given the importance and complexity of stakeholder management
• Focus on the functional control (deliverable based) using:
  • end to end visibility (PDCA-cycle)
  • visibility of all activities, project dependencies & project statuses
  • fact based & aligned reporting
• Detailed progress reviews

Supply chain transformation, project management and implementation & BCI advice

Buck Consultants International has supported companies with the transformation of the physical supply chain network, (logistics) organizations, and the integration and cooperation with supply chain partners and IT. A successful implementation is not only driven by consultants: creating support on all levels in the organization is crucial in the change and transformation process.

BCI can support clients by assuming the following implementation and transformation roles

• Ownership role - Typically for large supply chain transformation projects or interim logistics management. In such a role, the BCI project leader is accountable and responsible for the project execution and implementation
• Project Manager/PMO role - Typically to fill bandwidth and a capability gap. This project management role can include setting up the program management office (PMOs) or supplement existing ones to drive progress in the line organization and develop / validate business cases, provide overall governance, identify risks and monitor developments.
• Subject matter expert role - Typically to fill capability gaps. This can be on a wide range of supply chain related topics
• Facilitator/Coach - Typically to develop the capabilities in the organization. This role can include providing mentorship to the employees to develop the necessary capabilities and/or assessing current skills levels and identifying areas that require improvement, develop the future change leaders

Clients

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