1. Competitive Imperatives for Global
Supply Chain Management
Rich Sherman, Director of North America
Supply Chain Council
www.supply‐chain.org

2. SCC: An independent, non‐profit global association
• Formed in 1996 to create and evolve an open industry process reference
model of the supply chain for the benefit of helping companies rapidly and
dramatically improve supply chain operations
• SCC has established the supply chain world’s most widely accepted framework
– the SCOR® process reference model – for evaluating and comparing supply
chain activities and their performance
– SCOR is an open industry process standard containing over 200 process
elements, 550 metrics, and 500 best practices including risk and
environmental management and HR skills requirements for each process
– It lets companies quickly determine and compare the performance of
supply chain and related operations within their company or against other
companies and can be used as an unbiased foundation for value based
outsourcing relationships (e.g., DoD PBL standard)
• SCC continually advances its tools and educates members about how
companies are capitalizing on those tools
– With membership open to all interested organizations
SCC ‐ ISM/NAPM April 2010

3. Global Scope With Over 800 Member Organizations
Member Distribution
Australia/Ne
w Zealand South Africa
China Latin
America
Southeast
North Asia
America
Japan Member Affiliation
Europe Government
SME
End User
Enabling Technology
Also developing Consultant
chapters in India and
Non-Profit/Academic
the Middle East
0% 10% 20% 30% 40% 50%
SCC ‐ ISM/NAPM April 2010

4. What Keeps You Up at Night?
Stock Market Volatility, Oil Prices,
Labor, Political Instability, Security
Reducing Inventory/
Working Capital/ Asset Reducing Total Supply
Management Chain Costs
Supply Chain
Resiliency &
Competing in a
Sustainability:
Global Market
Risk Management
& Green
Providing Superior & Consistent
Customer Service While
Increasing Revenue & Margin
Business As Usual Has Been Cancelled…Now What?
SCC ‐ ISM/NAPM April 2010

5. Superior Supply Chain Management (SCM) has Long Been
a Source of Competitive Advantage
% of Revenue
Best-in-class Companies’ Outperform Their Median Competitors with a
50% Cost Advantage
Source: PRTM/The Performance Measurement Group
SCC ‐ ISM/NAPM April 2010

6. Leadership Positions are the Foundation
for Growth
LEADERSHIP
POSITION
HIGHER SUPERIOR
MARKET FINANCIAL
SHARE RETURNS
REINVEST AT A
GREATER HIGHER RATE
VALUE THAN
TO CUSTOMERS COMPETITORS
NEW PRODUCTS, SERVICES,
COST IMPROVEMENTS

7. Creating Market Leadership Requires Innovation
. . . Game Changing Strategies
Business
Transformation
Competitive
Advantage Operations
Efficiency
While the World may be Flattening, it’s not the just the Playing
Field that’s changing. It’s How You Play the Game within New
Performance
Paradigms!

8. Paradigm Shifts
"A Paradigm is a set of rules and
regulations (written or unwritten) that
does two things:
1. It establishes or defines boundaries.
2. It tells you how to behave inside the
boundaries in order to be successful."
- Joel Arthur Barker, Future Edge

9. Innovation Adoption Theory:
The degree to which an innovation
is perceived as being better
than the idea it supersedes
has a direct impact on
the likelihood of adoption.
Perception: “No Pain, No Gain”
Why Change? Status Quo is Okay, Change is Hard
Work!
More Gain than Pain must be demonstrated!

10. Ground Transportation
"What can be more palpably absurd than the
prospect held out of locomotives traveling twice
as fast as stagecoaches?”
‐The Quarterly Review, 1825
ll

11. Information Technology
“I have traveled the length and breadth
of this country and talked with the
best people, and I can assure you that
data processing is a fad that won't last
out the year.”
‐Editor in charge of business books for
Prentice Hall,1957

12. Max Planck ‐ 1936:
An important innovation rarely makes its
way by winning over its opponents...
What does happen is that its opponents
gradually die...

13. For Example: The All Time Best
"There is no reason
anyone would want a
computer in their
home.“
--Ken Olson
chairman and founder
Digital Equipment Corp., 1977
DEC acquired by Compaq (PCs)
acquired by HP (DEC’s #1
Competitor!

14. Max Planck ‐ 1936:
An important innovation rarely makes its
way by winning over its opponents...
What does happen is that its opponents
gradually die...
Can the business survive while
waiting for Old Ways to die?

15. Game Changing Strategy
"I can't stand this proliferation
of paperwork. It's useless to
fight the forms. You've got to
kill the people producing them."
- Vladimir Kabaidze, former USSR

16. The Point
“Progress is impossible without change;
and, those who cannotInnovate, Improve & Adapt in
Companies must continuously change their minds
response to the Dynamics of Market Change!
cannot change anything.” -George Bernard Shaw
“Change is inevitable, Growth is Optional”
…

17. Welcome
• Outstanding Line Up of Speakers
• Case Studies, Thought Provoking Panels –
• Ask Questions, Ask Questions…
• Text Me Your Questions – 512‐294‐6558
• Network, Introduce Yourself, Share Experience
• Take Away New Ideas and Approaches
• Share with your Colleagues when you return
• Have a great Conference!