The document outlines five key principles for successful supply chain management: understanding customer needs and aligning them with organizational strategies, adopting lean philosophies for continuous improvement, establishing an effective information infrastructure for collaboration, integrating business processes across all levels, and developing adaptive decision support systems. It emphasizes the importance of knowing both the customer and the organization to drive effective supply chain practices. The principles advocate for creativity, empowerment, and the need for organizational changes to address uncertainties in decision-making.

1. Supply Chain
Management
5 Principles for Success
Prepared by:
John Hansen
MBA565 Supply Chain Management
Robert Loss
Concordia University

2. • What do they want?
• Where do they want it?
• When do they want it?
• How do they want to receive it?
• What are they willing to pay?
Know Your Customer – Know Yourself
Principle One
Know Your Customer

3. • Vision, Mission and Values
• Core Competencies
• Strengths and Expertise
Know Your Customer – Know Yourself
Principle One
Know Yourself
Align Your Philosophies and Values
with Your Strategic Goals

4. • Analyze and adjust the physical
operating environment
• Cross-trained, empowered and
motivated workers
• Creativity or ideas are innovative only
if they bring value
Adopt Lean (Continuous Improvement) Philosophies
Principle Two
Lean Philosophies
Continuous Improvement is a
thought process, a culture, or belief system

5. • Access to common data sources
• Joint planning of strategies
• Create a Knowledgebase
• Interactive Discussion Board
Supply Chain Information Infrastructure
Principle Three
Information Infrastructure
True collaboration requires more
than data exchange

6. • Intra-organizational
• Inter-organizational
• KISS Rule of Thumb
• Framework with flexibility for
individual adaptation
• Empowerment & Ownership
Integrated Business Processes
Principle Four
Process Integration
Avoid process maps or SOP’s that require an
engineer or other expert to explain

7. • Pertaining to Risk Management and
Uncertainties
• Consider all Levels of Supply Chain
• Distributive Leadership (flat organization)
• At strategic points along supply and
production chain
Unite Decision Support Systems
Principle Five
Decision Systems
Decision Support Systems must deal with
uncertainty in an explicit manner

8. • Effective implementation requires an
organizational change approach
• Human Capital – Behavioral Change
• One size fits all approach is not
effective
Supply Chain Management
Personal Thoughts
Management Ideology