6 Pillars of Supply Chain Management (SCM) Thinking

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Supply Chain thinking used to be limited to the managers of few global companies--companies that were struggling to coordinate internal information and materials. This, however, led to exciting boom in cross-business coordination based on Supply Chain Management (SCM) concepts.


Today, the field has broadened and shifted over time. Current Supply Chain trends--differentiation, outsourcing, compression, and collaboration--are being used to restructure supply networks and improve coordination. As more companies integrate their networks, capabilities are improving. The levels of product customization and business complexity are also increasing. As this continues, SCM is being used in new ways to create uniquely defined customer relationships.


The field of Supply Chain Management will continue to influence companies. The best way to understand the impact of a long-term trend is to examine how the trend has changed the way executives view their businesses and what issues they choose to focus on. This framework provides every company the 6 pillars of SCM thinking--the 6 major shifts in business thinking.


1. Multi-company Collaboration
2. Market Mediation
3. Demand Focus
4. Product Design Influence
5. Business Model Innovation
6. Customized Offerings


By understanding these shifts, executives will be guided in their decision as to which Supply Chain Management initiatives and enablers should they implement internally and with partners.


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