1. Reaction to “The Supply Chain Becomes the Demand Chain”
Scott Saunders
HAVI Global Solutions
I applaud the authors for bringing needed attention to the idea
that driving business value in today’s complex marketplace
requires a cross-functional perspective. The silo mentality that
characterizes many business schools is similarly a challenge in
organizations that have conflicting or differing internal and/or
extended supply chain performance objectives. I can offer two
examples of where industry has overcome this silo mentality.
• First, some organizations align compensation for a majority of
employees. Metrics for profitability and working capital are
aligned and consistent across all functions and the shared ser-
vices of these organizations. These common goals drive col-
laborative behavior.
• Second, organizations that follow a disciplined approach to
Sales and Operations Planning or Integrated Business Planning
(IBP) processes where cross-functional senior leadership is
accountable and aligned on the same metrics demonstrate
overall better business performance and aligned decision mak-
ing.
How can academia learn from these successes?
SILOS, THE ACADEMY, AND PRACTICE
The world is changing, it is complex, and if we spend all our
time focused on the words we use (supply chain vs. demand
chain) will we be better enabled to address these challenges? I
urge academic researchers to get to the root of the problem and
send out a call to action to fix it! However, I worry that the
existing performance metrics and rewards systems in academia
do not foster changing this type of silo behavior. The learning
from successful businesses who have achieved mature levels of
IBP processes is that aligned objectives across disciplines/depart-
ments foster collaborative approaches. Publishing and research in
the so-called “right journals” that many business leaders are
unaware of or lack inclination to read regularly is an archaic
practice and does not create the type of thought leadership that
academia should be providing. We must work together to change
this educational model to create the right forums and venues for
practitioners and academics to cocreate initiatives that drive
tangible results. My experience over the past 10 years working
on projects with the researchers at The Global Supply Chain
Forum has shown me that this can be achieved.
There continues to be opportunities for academic research to
provide thought leadership and drive innovation in business
practices. But, we must not lose sight of the need to provide
value to society through implementation and application of these
ideas. Businesses find that when presented with difficult supply
chain problems, we often utilize consulting companies instead of
academic institutions because consultants have formalized meth-
odology and implementation approaches in place. The opportu-
nity for academia to integrate with corporations by
demonstrating not only how the “theory” works or how the
“math” should be done but also how to implement along with
the change management implications could be both financially
advantageous and provide better preparation for the students who
will become our future business leaders.
I also found it encouraging that the Cranfield School of Man-
agement is integrating their Marketing and Logistics teaching
groups in the business community. With the war on talent for
supply chain/demand chain/marketing . . . . . . talent whatever we
call it, companies need to have a supply of students coming out
of universities with an understanding of the entire value chain.
University programs should strive to provide managerial educa-
tion that integrates across functions the same way industries are
being forced to manage extended supply chains. Extended supply
chains/companies that are not customer centric will fail. Addi-
tionally, we must align demand fulfillment and demand creation
to gain competitive advantage in the marketplace. The growth,
margin improvement, value cocreation, and continuous improve-
ments provided by this change in perspective are key to business
success.
RESEARCH INTO ACTION
After reviewing the potential research agenda identified by
Christopher and Ryals (2014), I wish there would have been a
more extensive call to action. What needs to take place to get
things going? What are the obstacles? Some points, however,
resonate strongly:
• The topics of IBP and value cocreation are critical consider-
ations. It is important to not only identify these ideas but also
to provide a roadmap to implement.
• Creating models for performance measurements that drive
aligned behavior across functions could be of great benefit to
companies. If students are educated in environments character-
ized by functional boundaries, this silo perspective will be car-
ried on into their careers.
• Academic research needs to move beyond describing and
developing platforms of why these things are important.
Researchers must demonstrate that their recommendations are
implementable. Creating methodologies for implementation
would engage greater business involvement.
Corresponding author:
Scott Saunders, Supply Chain Integration, HAVI Global Solutions,
Downers Grove, IL, USA; E-mail: ssaunders@havigs.com
Journal of Business Logistics, 2014, 35(2): 153–154
© Council of Supply Chain Management Professionals

2. • The time has come for us to recognize and define what the
change management challenges are. Too often, we change
too slowly to meet customer needs and remain relevant.
In other words, “I know that I need to exercise more. You
do not need to provide a mirror for me. What I need is for aca-
demia to provide the ideas and the methodology to be able to
implement the right processes to fix it”!
Why does academia not take the leadership opportunity? Uni-
versities are the lifeblood of future organizations. Companies
need to continue to develop relationships and partnerships to
attract the best talent. Schools themselves need to take down the
walls and “egos” between the different functions as referenced in
the research, for example Marketing and Logistics. The opportu-
nity to drive innovation can be lead and facilitated by universi-
ties if they bring together different companies and individuals
with common problems or experiences.
154 S. Saunders