GLOBAL SUPPLY CHAIN MANAGEMENT
Closing Talent Gaps for Global Supply
Chain Management
While the economic slowdown has adversely impacted the volumes of global sourcing and
product distribution, global recovery will continue to fuel expansion of importing and export-
ing worldwide. For companies that source and distribute internationally—more than 80 per-
cent of all companies that make or sell products—supply chain managers need to continue
improving their knowledge and processes for effective global supply chain management.
—Gene Tyndall, EVP, Global Supply Chain Services, Tompkins Associates
lobal supply chain management is complex,
challenging, and continually changing. It
involves all mega-supply chain processes—
PLAN, BUY, MAKE, MOVE, STORE, AND
Most surveys continue to find serious gaps in knowledge
and experience in global supply chain management. Fewer
than 20 percent of supply chain managers have enough
knowledge to plan globally. Even fewer have the experience
to manage global operations effectively. While some will learn
global logistics and the physical supply chain, they will fall
short in understanding trade finance. And some may learn
cargo security regulations and compliance, but fall short in
understanding the international tax implications of routing
logistics flows.
Often, a lack of knowledge causes global supply chain
performance measures to be limited. Definitions of cost,
time, and service are far different in global operations than
those of domestic. Working capital tied up in inventory, for
G
example, is not so important with four weeks of supply as it is
with 12 or more weeks. And, the measurement of Total Delivered Cost is far different when product is sourced in China
and sold at retail in the U.S., than when shipped overnight
from a domestic plant.
Going forward, global supply chain managers MUST
develop enough working knowledge to advise senior executives and plan for global expansions. It will be unacceptable
for multiple departments to have to consider individual issues
for weeks or months in order to advise C-levels on what,
where, who, why, and how to BUY, MAKE, MOVE, and SELL,
and what the related implications are.
The Outlook
In 2010, more global supply chain managers will step up to
learn more about doing business globally. Their companies
will demand more ideas, faster responses, and better identification of complete choices. The critical success factors for
competitive advantage will return to new initiatives in cost
management, profitable growth, and service differentiations –
all of which have global implications. Supply chain managers
need to be in the forefront of the recovery, as well as become
competent business advisors.
