Network Member Question:
We recently had a Supply Chain group meeting that was attended by Supply Managers from various companies. There was a hot debate and each one had a justification for their respective positions. Looking for an expert opinion.
Ashish Mendiratta, Director Supply Chain, Philips Electronics India Ltd, India
My Answer:
Your question would appear to inadvertantly create the hierarchical elements of a vertically-aligned organization and therefore build rather than remove the partitions that impede collaborative communication. The result, as demonstrated by the continuing high rate of supply chain/e-procurement initiative failures (approximately 85% of all programs fail to achieve the expected returns), is a disconnect between critical stakeholders both within and external to the organization.
As a means of expanding on this important concept, I would like to direct you to Part 4 of my 7 Part Dangerous Supply Chain Myths Series. (See the direct link under Additional Resources.)
In particular, note the results of a 2007 Aberdeen survey of CFO’s, and you will begin to understand why the “chain” of command relative to reporting is largely a moot point in the absence of a collaborative environment in which a “collective” best result outcome is identified and achieved.
NOTE: You will probably find the other parts of the series to be usefull as well, so I have included the main access link for your convenience.
Additional Resources:
Dangerous Supply Chain Myths (Part 4) Revisited
http://www.procureinsights.wordpress.com/2008/06/25/dangerous-supply-chain-myths-part-4-revisited/
Dangerous Supply Chain Myths Series
https://procureinsights.wordpress.com/category/supply-chain-myths/
To learn more about the Dangerous Supply Chain Myths Seminar Series as well as our other Seminars, simply use the following URL Link: https://procureinsights.wordpress.com/seminars-and-conferences-with-jon-hansen/
Procurement Insights 
Posted on July 18, 2008
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