Lorie King Rogers, Associate Editor -- Logistics Management, 1/27/2010
It's no coincidence that industry leaders share common traits that set them apart from the competition. In the recently published "Diagnosing Greatness: Ten Traits of the Best Supply Chains," authors Frank Quinn, chief editor of LM's sister publication Supply Chain Management Review (SCMR), Chuck Poirier of CSC Consulting and Morgan Swink of Michigan State University, highlight 10 common denominators of successful supply chains.
These traits, which range from close collaboration with key business partners to superior logistics execution, are detailed in depth in this new book. The authors explain how these traits of excellence translate directly to higher revenues and lower operating costs. They also present a series of case studies that show how the leaders have put the traits into action. A valuable glossary of supply chain terms rounds out Diagnosing Greatness.
Quinn said in an interview that a series of annual studies conducted by SCMR triggered the idea for the book. He said that for the past several years SCMR had been surveying supply chain practitioners to identify a number of key business practices. The 8-page survey asked for feedback in a number of areas, including management processes, strategic mission with regard to supply chain issues, and the impact of supply chain initiatives on cutting costs and generating revenue.
"For the first couple of years, we reported the results," Quinn said, "But then we started to see patterns and make correlations between organization initiatives and how effectively the supply chain was able to cut costs and increase revenue."
Top 10 traits of the best supply chains include:
1-Sound supply chain strategy supported by solid leadership
2-Intense focus on financial metrics
3-Commitment to innovation and process improvement
4-Close collaboration with selected partners
5-Superior strategic sourcing
6-Excellence in logistics execution
7-Proficiency in planning and responsiveness
8-High customer integration and satisfaction
9-Ability to anticipate and manage risk
10-Globally optimized operations
When asked how these traits resonate within the materials handling industry, Quinn explained that "Materials handling is part of a broader concept known as supply chain management. These traits span all industries. They are broad principles, some very intuitive, that will contribute to the success of any business. This book is a culmination of seven years of research in the global survey of supply chain progress. We're proud of the final product and think that it's a worthwhile addition to the body of today's supply chain literature."
