Supply chain leadership is not logistics leadership

Author without image icon
Editorial
28 October 2015
2 min

‘'We are going to introduce supply chain management'’. It won't be the first time the logistics or operations manager was told this. Whereas the logistics manager is only responsible for his own operational branch, the supply chain leader needs to monitor quality across the chain. Getting all these departments, with their different interests, to work together is quite a challenge. Michel van Buren MBA, gives logisticians tools to get started with supply chain leadership during his lecture. 

“Supply chain leadership is very different from logistics leadership”, Van Buren explains."In logistics, there ishierarchicalleadership over, for example, warehousing, transport and distribution. The logistics manager leads the people in his departments. But with supply chain leadership, things are very different. The supply chain leader is responsible for the entire chain, without having responsibility for all the separate activities. Think of procurement, supply chain planning and production. It is difficult to get people to move in a certain direction without beinghierarchicallyresponsible forit."

Functional thinking and doing still tends to clash with supply chain thinking and doing, Van Buren believes. Each discipline hasitsown goals. The buyer wants to buy as cheaply as possible, but that is not always good for the whole supply chain. "Suppose you supply for MacDonalds and they want quality fries.Then suddenly the buyer has to start buying expensive, whereas he is naturally inclined to do it as cheaply as possible." With another customer, it can be completely different again."If cheap frozen fries are then delivered to Lidl, it is again necessary to buy as cheaply as possible." That is why, according to Van Buren, it is important for operational managers to have a good understanding of which customer they are working for and what wishes that customer has."The supply chain leader must indicate in each department: this is our customer, these are the requirements and this is your role in the chain."

On Wednesday 11 November, from 13:30 to 14:00, Van Buren will give a lecture on good supply chain leadership. Logisticians who want to introduce or improve supply chain management but are still struggling with it will receive tips from Van Buren on how to get all departments in the chain to work together effectively.

You can register for this session for free here.