As companies globalize and outsourcing spreads,
supply-chain managers must make decisions involving networks of partners in
far-flung corners of the world. Meanwhile, a fierce competitive marketplace is
driving companies to collaborate with suppliers to help them develop products
more quickly and reduce waste in the supply chain. Technology is also pushing
suppliers and clients closer, making it easier to keep tabs on orders and share
information. All of which means supply-chain managers are shouldering a lot
more responsibility — and need a new set of skills.
Standard
Practice: Traditionally, supply-chain managers have been little more than
purchasing officers — dealing with a handful of familiar suppliers and doing
little strategic planning.
Growing
Complications: As outsourcing spreads and companies
globalize, these managers must deal with suppliers around the world — and
often must work closely with them to help design new products and eliminate
waste in the supply chain.
New
Approach: Supply-chain managers must develop a new set of skills to meet
these challenges, such as immersing themselves in technology, learning the
nuances of vital markets around the world and figuring out the best ways to
build crucial relationships inside and outside their companies.
Managers
must know, for example, the differences in legal and economic environments and
trade practices in different countries, and they must have the ability to
communicate across cultural barriers. Or, if they can't do all that themselves,
they must hire people who can do the job for them.
As the job
of supply-chain management gets more complex, managers must be trained to think
of overall company strategy — and shareholder value — as they do their job.
They must resist the temptation to make decisions that satisfy short-term needs
at the expense of long-term organizational goals.
Planning,
communications, team-building and relationship-management skills are necessary
for success. Managers must also learn how to integrate outside suppliers into
internal teams — a critical move as companies and partners collaborate more
closely.
Finally, and
perhaps most important, supply-chain managers must always keep learning. They
must consciously pursue their career development, building knowledge and skills
that will enable them to excel and create competitive advantage for their
companies.
Source: Giunipero, Larry and
Handfield, Robert and Johansen, Douglas, “Buying: Supply-chain managers used to
have one main job: purchasing stuff cheaply. They need a whole new skill set
now. Wall Street Journal, March 10,
2008.