Supply chain mastery is a bit like hosting a Thanksgiving dinner: Success lies in attention to the overall result as well as the details. "You have to bring all of the elements together to make sure the executive team has the information it needs to make the decisions [it needs] to make," says Karin Bursa, vice president of marketing at Logility, Inc. (Atlanta, GA). The best decisions stem from a broad perspective -- one based on numerous analyses. Specifically, manufacturers need to understand whether a customer is profitable for them and how much profit that customer generates, Bursa says.

Supply chain mastery is "not so much technology, but process change," says John Clark, manager of marketing at Provia Software (Grand Rapids, MI). "It's important to step back and look at the process and ask, 'Is there a better way?'" He warns against the mentality that says, "This is the way it's always been done."

"A lot of companies don't look at change as a positive thing," Clark says. But if you look at it negatively, he says, you won't enjoy its benefits.

Identifying the Need

Management needs vision that goes beyond simple upgrades. "So often customers just want to automate existing practices," says Tom Kozenski, vice president of product marketing -- distribution solutions at RedPrairie (Waukesha, WI). "That sets the bar so low because there is so much more that can be improved." Generally, he says, "you need dramatic process change to achieve dramatic process improvements." This can be difficult, he admits, because it requires a "leap of faith to go from where you are today to where you need to go." The key, he believes, is to understand workflows and connect the supply chain to operations.

"Many companies don't know how to collaborate," Kozenski says. But sharing information is often a win/win situation. It also should be noted that it's not necessary to collaborate with every supplier. In a pool of 300, the biggest benefit may be realized in collaborating with the top five or 10 suppliers. It may not be worth the effort, time, and expense to establish interfaces with the rest.

Once pain points have been identified, the management team needs to set priorities.

Evaluating How to Change

In the quest for supply chain mastery, changes fall into three groups: supplier-focused, internal improvements, and customer-focused. Some solutions encompass all three areas.

Common tactics for improvement include implementing dynamic sales and operations planning, optimizing inventory levels and locations, monitoring supplier performance, and ensuring on-time delivery. "Supply chain technology helps at every stage," Bursa says.