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This advice is not new. Analysts, consultants, and others have been telling companies
to break down their supply chain functional silos for as long as I’ve been in the
business, yet those silos still remain tall and strong at many companies.
Source: “The
Case for Less Silos, More Intelligence in Supply Chain Management,” webcast
for the most part, continue to operate independently from each other, each driven by
Source: “The
Case for Less Silos, More Intelligence in Supply Chain Management,” webcast
large CPG manufacturer a few years ago. One of his biggest challenges at the time was
finding out about trade promotions at the last minute. And to make matters worse, none
of the product groups would talk with each other, so multiple promotions might run the
same week. Simply put, he would always have to scramble and pay above market rates
Having worked with hundreds of managers over the years, I’ve seen that
very few admit to being poor collaborators, mostly because they mistake
their cooperativeness for being collaborative. And indeed, most
managers are cooperative, friendly, and willing to share information —
but what they lack is the ability and flexibility to align their goals and
resources with others in real time.
Historically, supply chain software has mirrored this silo’d organizational structure.
the most part, have focused on maximizing the performance of a single business
process.
Source: “The
Case for Less Silos, More Intelligence in Supply Chain Management,” webcast
Sure, companies and software vendors have invested a lot of time and money
integrating these applications, but just like there’s a difference between cooperation and
collaboration, there’s also a difference between data sharing, which has been the focus
So, if companies have not listened to the “break down your functional silos” advice for
the past 20 years, why should they now? What has changed?
That was the central question I addressed in a recent webcast titled The Case for Less
Silos, More Intelligence in Supply Chain Management, where I co-presented with Dan
“succeed despite” anymore — that is, despite having poor visibility and control of their
supply chains; despite having outdated and inflexible IT systems; despite not taking a
holistic perspective of their end-to-end processes; and the list of “despites” goes on.
accurate, timely, and complete supply chain visibility than competitors. This requires
companies to “walk the talk” on breaking down supply chain functional silos, both
enhanced analytics — are enabling functional groups to share not just data with each
Case for Less Silos, More Intelligence in Supply Chain Management,” webcast
Source: “The
Case for Less Silos, More Intelligence in Supply Chain Management,” webcast
In case you need to hear it again: Break down your supply chain functional silos.