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Airline Value Chain
Reprinted with permission of Auerbach Publications, CRC Press LLC, 535 Fifth Avenue, New York, NY 10017. All rights reserved.

SUPPLY CHAIN STRATEGIES
Jim Ayers
By thinking in terms of supply chains instead of individual operations or departments, CIOs can improve their competitive strategies. These strategies, in turn, change organizational operations, roles, and information systems. This article shows how such “supply chain thinking” works.

upply chains are a hot management topic. Eyes are opening to a more global view of end-to-end material, information, and financial flows. As it is with most good ideas, commercial interest drives much of the hype. The management consulting industry contributes with new buzzwords to stimulate and sustain interest. So supply chain synthesis and demand flow leadership debut in press releases and seminars. Substantial contingents of software purveyors also vocalize the concept. Companies investing millions in new systems do not want yesterday’s solutions. “Supply chain thinking” is a better characterization. This term infers a more gradual infusion of new mindsets and methods into traditional tasks. Most managers have the same concerns today as managers had ten or 50 years ago. These concerns include products, markets, people and skills, operations, and finance. Supply chain thinking brings change to the tasks managers perform in dealing with these issues.

S

describes practical ways to bring supply chain thinking to the task of strategic planning. Too often strategic planning goes on in an operational vacuum. Gaining advantage from supply chains requires cross-functional thinking that is uncommon in most companies.
SUPPLY CHAINS AND STRATEGIC ADVANTAGE

FIVE TASKS THAT WILL CHANGE

JIM AYERS is a principal with CGR Management Consultants in Playa del Rey, CA. He can be reached at (310) 822-6720.

Exhibit 1 lists five tasks important to supply chain design and operation. Alongside each is a brief description of the

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