The Top Ten Supply Chain Mistakes

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The Top ten supply chain mistakes

Submitted by:
sanjoli madan
10ib-051
pgdm(ib) 2010-2012

Sumantra Sengupta, author of this article, was senior vice president of Global Services at The Scotts Company when the article was published in 2004. Previously he was vice president in the Supply Chain service line of the consulting firm Capgemini. Sumantra Sengupta described his observations of many companies struggling with their initiatives and making many recurring mistakes while implementing supply chain management. According to him, Total Supply Chain Management goes beyond the management of internal elements. It begins and ends with the wants and needs of consumers and customers. This article gives some guidelines expressed as the mistakes that managers often make when attempting system-wide change in their supply chain and the author has focused on ten most common mistakes. Mistake 1: Always viewing the supply chain as a “chain”

In addition to the traditional internal activities and relationships, supply chain practitioners now need to focus externally on business-to-business and even business-to-consumer processes and interactions.  

Mistake 2: Continuing to do business as usual
Companies that did not substantially shift their go-to-market strategies or channel strategies achieved only small incremental benefits.

Mistake 3: Having the wrong idea about “control”
Not every company will be able to become virtual in all aspects, nor should they. Even a company like Cisco Systems- a wonderful example of extended supply chain leader- still retains strategic control and planning of its overall supply chain and firm tactical control of key elements. In the future, supply chain success will be determined largely by the degree of partnership between the businesses that make up the extended value chain.  

Mistake 4: Failing to synchronize demand and supply signals
Leading-edge companies track point-of-consumption data as well as inventory at...
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