I interviewed Glenn Rosenholmer who discussed What it takes for Truly End-to-End Supply Chain Collaboration.
My name is Glenn Rosenholmer. I'm sort of a Senior Advisor. I currently help clients to find stability in their operations. If they are a global player and call for many dimensions, both dimension, and layers, and when that works, I work with needed improvement. It often is to build something that should be able to stand and work for more than the next month. It has to work for two or three years at least. So I also see this as a very, very challenging mission or ambition I get from my clients.
Why is this not done very often? Why is it so important?
Well, I think some ambition is required because of the experience and the fortune to be working in several types of businesses. I do think I have some insights to the key factors. The fact is that collaboration is not set up using enough time with the roadmaps and guidance that really, really need to be in place before you go ahead. You have to draw the map, and you have to draw the map in several different dimensions before you start the costly start of doing the physical work.
You also need expertise from all the functions. Unfortunately and typically, only one or two functions, drive an initiative. You're not getting the focus from all the functions — meaning sales, marketing, and logistics, production, distribution. All the expertise needs to be there to give an expertise. And the angles they can provide to do really good work are a solid network.
How do you identify meaningful relationships in your supply chain?
One way of putting it is that you obviously need contracts. You need a contract manager that the supplier follows with certain procedures and so on and key numbers that would set up in terms of lead times, etc., etc. But I have seen a tendency of several decision makers, they built a lot of overconfidence, much too much, I would say pressure for us is on the "right document. ". When it's written, it's perceived as some sort of written law. And life, day to day, is not that. It's very pragmatic. It needs to work on a daily basis, on a weekly basis. Therefore, I do believe that the trust between people and that people should build solid relations and respect for each other, even if it's a supplier or it's a customer. But it's business to business, and it's people business all the time. It doesn't matter which type of industry.
Therefore, I think many, as I see it, have overconfidence in written documents, and they should be focusing on the solid work practice in the network.
Where is the real opportunity for supply chain professionals and executives? What should they do to get started?
I've just written a short article on LinkedIn articles network for business people. I think I was not too explicit about the fact that you should never, underestimate the bull-whipped effect. The bull-whip effect and what it can cost you if you don't think about added complexity. For instance, when you go into another country, into a country or continent with your product, it's so easy not to think the whole way through, and end-to-end thinking, it can be very easy to forget.
Another thing is everybody talks about the voice of the customer. But you need to really find out what is the customer's real interest. You need to do your homework and not only by using some sort of questionnaire. You need to meet them, and you need to understand what is perceived as added value. You have to prepare yourself to do the best for your operation and your business.
So I would say one idea, if you're in the workshop status, and you're in the beginning, you should actually have a meeting— you can call it meeting or workshop. Decide that for yourself. You need to have the sort of voice-of-the-customer status. How have we gained insight in the customer's perceived added value? How did you do it? You should also start every session of workshop...what is the Bullwhip Effect as perceived for the moment? We learn from every day and have to add that as well as a guide.
My recommendation is start with those two — the-voice-of-the-customer status and what is the foreseen Bullwhip Effect and try to guide for self in the logistic initiatives to deliver a solid network by repeat that, and never forget it. That's my quick advice.
Well, thank you, Glenn, for sharing today.
Well, thank you, Dustin. It's good to be on, and I hope you have a really good day, and I hope that I can add some thoughts if there’s another issue or business area that somebody needs to have input in.
About Glenn Rosenholmer
Glenn will be in Lisboa 14-16 May. He currently works in Supply Chain Fashion for a Luxury Premium trademark.
Management Consultant and CEO