"The True Supply Chain Disconnect"

[Pat Lupica]

Summary: Concepts suggested in this paper begin internal to an organization, but benefits span the entire supply chain. This paper suggests that the division between sales and operations will impede supply chain alignment if firms don’t find a way to flow valuable customer information through the company to purchasing and on to suppliers, who in turn need to ensure that information is being flowed through to second and third tier suppliers in a timely manner. It is suggested that a fundamental shift is required in the traditional reporting structure, responsibilities within sales and operations, and the goals and reward structure.

Practical Relevance: This paper identifies what is quite possibly the most significant break in
the supply chain, which is correctable without implementing expensive software, and is
fundamental to supply chain alignment, which continues to elude many companies.

I am interested in internal processes that firms are using to balance supply and demand.