Who is in and who is out of the chain?
If you had asked me a few years ago which function would be the last to embrace supply chain thinking, I'd have got it wrong.
Over time and despite the struggles, it has moved from being only about logistics to involving many departments. So who is in and who is out ... for now?
IT departments were involved with the arrival of finite capacity planning and scheduling software a while ago. Systems implementers realised how much change was required because they had to address new issues, such as mapping minimum stock and safety stock levels, or defining the constraining resources.
Planning and operations entered the supply chain debate early. Some exchanges were quite heated, but the focus on lead-times, flexibility and costs made these arguments necessary.
The new demand planning function generates crucial objective forecasts, away from production and sales. Because of this shift, I thought commercial staff would take longer to join the debate. But I was wrong: they are involved in initiatives, learning how an integrated supply chain can generate more sales.
The revival of sales and operations planning has also upped the pace at which firm functions are being called on to provide input or make joint decisions.
So who is missing? I keep hearing of firms buying too much packaging and raw materials on the basis of a lower cost per unit. Purchasing decisions still seem to occur in isolation. I know that other functions are striving to embrace the full spirit of supply chain thinking. But purchasing still seems motivated by immediate savings, with little consideration for impacts further down the chain. I see little evidence of purchasing trying proactively to make supply chains leaner. In fact, most firms ask me if purchasing should even be included in initiatives.
I've probably upset some people now, but I am merely reporting on facts.
''Hugh Williams is founder of supply chain planning specialist Hughenden.
