Strategic Business Models Using Business Motivation Modelling (BMM)

What is the “e” in e-Supply Chain

An article based on a talk given at the Loyola Institute of Business Administration (LIBA) in Chennai.

By Mark McGregor

When I was asked by my good friend Sai Sridhar to come and talk about “Creating and Managing e-Supply Chains” at the LIBA Supply Chain Centre of Excellence, I was very nervous. For you see, whilst I have studied and taught about Business Process for many years, using all the different methods such as Lean, Six Sigma, BPM and Operational Excellence, I had never spent any real time looking at Supply Chains as a specific

Of course, Sai was very reassuring and convinced me that it was best for me to simply apply my own process thinking to the issue of supply chains – and hopefully as you read this article you will see he was right!

As I looked into the subject area a few things became apparent, firstly that Supply Chain professionals can suffer from the same myopia as other process professionals. Seeing only the things that relate to their own specific process and potentially ignoring the processes that fall outside that specific remit.

Supply chains as with other processes need to be looked at in a wider context of business, as we shall see from some example later, this can be crucial for true corporate success. Speaking of which, what is the purpose of having an improved supply chain? Very often it is seen as being about standard procedures, or improved processes, while others see it as a way of increasing profit or reducing costs. Few people think about the people aspects of any changes, and fundamentally the focus is far simple – improving performance.

Better productivity from our people, reduction in unnecessary procedures, simplified or streamlined processes all contribute to reducing waste (cost?) and increasing productivity. The end result is that we improve our corporate performance.

The focus of my talk was, as the title of this article suggests, the meaning of “e”, for it seemed to me that there was an assumption that the “e” in e-Supply Chain should mean electronic. Well as Bill Gates once said systems simply mean that we can produce the wrong results faster and cheaper than before. So, then I though that perhaps it might mean “e” for enterprise, after all a good supply chain really should cover us all the way from and to the customer right? Well in theory maybe, but that did not appear to be the way that many look at it. Even the Supply Chain Council started Customer Chains as a separate initiative (never really understood that one!).

Then I realised that a lot of the focus had been on “e” for efficient, a very internally focused way of cutting costs that might not produce the best outcome for the customer and by extension for the business, instead I suggest that as with any process the “e” in this area should be for effective – always better than efficient.

So the “E”s should come in order – look at it from an Enterprise perspective, ensure that the chain will be Effective and then where appropriate provide systems that allow it to become Electronic.

By linking, all the “E”s together in this way then we can be sure that we are taking a holistic approach that will provide the best results in terms of corporate performance.

In order to achieve this desired focus, I put forward some ideas around a framework for change; this is something that Sai Sridhar and I have been working on for some time. It is based on some previous research on frameworks and change that I had done and some applications of the concepts that Sai had used over the past few years.

In essence the frame suggests that there are five key perspectives that one needs to take account of in the supply chain area, these are Purpose, People, People, technology and Programs. Each of these perspectives needs to be examined and thought about in relationship to the others.

Then one needs to have a clearly understood process for dealing with each perspective and managing the change that is desired, this process is detailed in my recent book “People Centric Process Management” and is based on a universal process for change. The process uses eight steps, each of which must be carried out in sequence. They are Discovery, Analyse, Design, Validate, Impalement, Integrate, Manage and Improve.

When one combines the perspectives with the process you wind up with a complete framework that enables businesses of all sizes and types to easily understand, change and compete as required. Full details on the framework and its application in the supply chain area are the subject of current work being undertaken by Sai and myself. It is likely that this will appear in a new book next year.

My talk closed with a few simple reminders to those who were willing to listen and act.

· That it is important to take some time out and better understand change and its impact,

· One should never be afraid to start without technology.

· Always focus your efforts on the parts where value is being created.

· Ensure that whatever you deliver is being used.

· Communicate, Communicate Communicate – most resistance is due to lack of communication

· Remember that success is a do with not a do to process; you need to bring people with you

I have to say, it was great to have the opportunity to interact with the supply chain community. It is rare that in one room you can find such a wonderful blend of academics, students and seasoned professionals, all focused on one particular topic and the ways to make things better.

I look forward to a return visit soon.

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Mark McGregor speaks, writes and coaches all over the world. In the past two years alone, he has presented to over 5,000 people in more than 20 countries. Mark has authored numerous books and hundreds of articles on business improvement. He has been described as a “Guru” by leading analysts Gartner Group, as a “Master of Mindset” by IQPC and a “Thought Leader” by the BPM Group. Using his own unique style and blend of skills he gets people to “Think Differently” about how they do and perceive business, this leads clients to a better understanding of the needs of their customers and designing processes that deliver excellence in performance. Staff involved in Sales, Marketing and IT have all benefited from Mark’s seminars and workshops on BPM and Communication Skills.

Mark McGregor
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