The curtain goes up and the orchestra begins the performance. Soon, as the lights go down amidst thunderous applause, there is not a dry eye in the house, and as the conductor takes a final bow, the members of the orchestra begin to pack up their instruments feeling a sense of perfect execution and satisfaction. This is the way it should be: a synchronized performance that every orchestrator strives for. Now a little bit more about the orchestra. The string section has been outsourced to the orchestra from Japan, the woodwind section was outsourced to the orchestra from Germany and the percussion group from Russia complements the rest of the local members of the orchestra. The transportation from performance site to performance site is provided by a provider with hubs in London, LA and Tokyo. The skills that the orchestra leader (aka: conductor) must have to make this magical moment happen for the patrons or customers are complex and of great depth. The skills span across: knowing what requirements exist to make a complete orchestra, knowing where and how to look for that correct global talent, ability to put performance oriented contracts in place for that talent, the capability to review patron feedback, thus deriving what they really want, and lastly the ability to lead, integrate and measure the performance of the entire orchestra – the local and outsourced global talent. The resulting performance is EXACTLY what the patron’s desire and in some cases pay double or triple the expected ticket price for. So, where am I going with this analogy? Quite simply, to the similarity of the skills that a Supply Chain Professional must have in order to successfully deal with the pressures the global marketplace puts on the enterprise and those that our orchestra leader/conductor possessed.
Let’s take a look at the pressures the global economy has placed on supply chain professionals in all enterprises. And, let’s focus on those pressures and the impacts they have had relative to the management of partners and the resulting skills a professional must have to be successful. One of the key pressures is the growth of emerging nations and the requirement this growth places on enterprises to cross many cultural and geographic boundaries. The impacts from this pressure include the need to manage multiple partners of various disciplines that have taken on a variety of roles, in various geographies, to clearly define contractual needs and requirements, manage the contracts and each partner’s performance, survey and understand the ultimate customer’s needs and satisfaction. To be successful, the supply chain professional must have the same skills to “orchestrate”, as mentioned above in a virtual environment. The Federated Enterprise that results is one with multi tiers of partners. It goes without saying that the possession of the skills we have been discussing must be supported by an integrated infrastructure of data/information.
As performance based logistics (or Power by the Hour as the military calls it) continues to emerge and evolve, skill requirements are put on the supply chain professional that include ability to define specific performance and contractual needs versus the skill of actual product design. The PBL partner is responsible for the design and development of a product that will meet the performance requirements that have been defined in the PBL contract.
Another pressure is the risk of an act of terrorism (nuclear, biological, or chemical), a pandemic, or global warming. The impact of this pressure is the need for appropriate security measures and associated preparedness plans. The result is the need for a supply chain professional to possess the skills to manage the synchronization of the creation, implementation and trigger points within these plans with all partners.
Lastly, are the pressures that come from the growth of illicit supply chains: counterfeiting and piracy. This causes the need for skills that allow for the supply chain professional to successfully select partners as well as to monitor their ongoing execution.What’s the point of all of this: if you are a supply chain professional, it’s time to put a plan in place to sharpen or create your orchestrator skills. Because, when dealing with partners, there is a very fine line between a bassoon and a buffoon!!