The Infosys global supply chain management blog enables leaner supply chains through process and IT related interventions. Discuss the latest trends and solutions across the supply chain management landscape.

« Why do sourcing professionals overlook factors other than cost despite enormous consequences of potential failures in supply chain? | Main | Part One: Do we really understand SRM ( Supplier Relationship Mgmt) ? »

So is SCM Transformation an Oxymoron or a Holy Grail to aspire to?

Transformation is a much-used (abused?) word these days. So, when I read Bob Ferrari's guest column at our blog site (http://www.infosysblogs.com/supply-chain/2009/10/resolving_the_constant_debate.html), something I keep wondering periodically came to my mind again - Is SCM Tranformation an oxymoron or is it actually a valid proposition? The context the word "transformation" is used currently refers to mega-sized, multi-year, multi-million, global-scale, rip-everything-off & replace programs. Since SCM is inherently an outside-in domain, the typical definitions of transformation may not apply.

Those would be easier done in ERP-kind of programs where you have the luxury of defining your boundary walls and getting your arms around the scope definition and change management. When you broach the topic of SCM transformation, you are in turn trying to tame a beast of a plethora of functions (what's really common after all between replenishment planning, contract management, warehouse management and multi-channel commerce apart from an umbrella term called SCM?), a range of stakeholders (suppliers, customers, partners, employees - at a basic level) and then a series of many-to-many interactions in the worldwide SCM web between these functions (or departments) and the stakeholder categories.

If we need to talk of SCM Transformation, we need to anchor this somewhere and that could mean starting with a specific function (eg: strategic sourcing or transportation management) and then expanding it globally while at the same time keeping an eye on the integration elements of that function upstream and downstream in the supply chain. At Infosys, we have a lot of clarity on this at a sub-function level. Take procurement: we start with spend analytics, go to strategic sourcing, then contract managment and finally PO side optimization covering, if needed, catalog managment and category management as well. Ditto with Supply Chain Execution triads of WMS/TMS/OMS. But my sense is that end2end SCM transformations these days are best not attempted since each of the parties in the chain is a supplier/customer with their own views on how "their SCM" would look like. Even with mega players like a Walmart or a TESCO, I am not sure if the locus of control is completely at their end, for all SCM functions. It works far better if done in a collaborative fashion.

TrackBack

TrackBack URL for this entry:
http://www.infosysblogs.com/supply-chain-mt/mt-tb.fcgi/181

Comments

Gopi,

Another fact is we need to cross check the definition of what a transformation is from client perspective too! Recently we tagged one of our 7 year client engagement as "Transformation", as any other vendor would have called it. But client looked at it as a "Transition" rather than a "Transformation". Appreciate your thoughts on differentiating a Transformation engagement with a Transition one, in terms of scope, change management et al (minus time lines) involved in it.

Rgds,

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Please key in the two words you see in the box to validate your identity as an authentic user and reduce spam.

Subscribe to this blog's feed
Are you using SAP APO? for supply chain planning?

Infosys on Twitter