PurchTips edition #230

There are countless characteristics that distinguish good supply chain leadership from bad supply chain leadership. One of those is how the supply chain leader positions the department’s priorities.

How do you know if a supply chain leader has properly positioned priorities? Here are four indicators. . .

• Priorities are documented. A well-led supply chain department will have its priorities documented, sorted in order of importance, and made visible to the supply chain team. Is Six Sigma quality more important than low prices? Does on-time delivery matter more than good service? Documented priorities ensure that the supply chain team is not left guessing.
• Performance is measured. A well-led supply chain department measures performance for its top priorities and constantly improves its numbers.
• Senior management’s expectations are understood. A well-led supply chain department understands how senior management defines supply chain success and aligns all of its activities – including the aforementioned measurements – with the expectations of senior management.
• A priority-based culture is in place. Having a priority-based culture means making the top priority apparent to all who interact with and within the supply chain team – from internal customers to suppliers to team members themselves. This involves integrating reminders into the daily environment by dedicating meetings to the top priority topic, displaying performance charts for the top priority, having a priority-based tag line in the email signatures of supply chain team members, etc.

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