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Supply Chain Consulting – Part 1

Asking the right questions to drive results
Supply Chain Solutions

Step 4 – Keys to Success
The success or failure of a supply chain consulting project largely results from the actions and attitude of the supply chain team. They must be actively engaged in the process, open to innovative ideas, and willing to trust the process. Shared project ownership with the consultants will avoid the “not invented here” syndrome and a loss of momentum after the engagement ends.

An essential element of a consulting project is candid communication. Con-sultants are not mind readers and cannot evaluate every nuance of a supply chain during the assessment phase. Teams must openly share their data, identify known problems, and specify desired outcomes. A nondisclosure agreement is an effective tool to ensure confidentiality of these conversations and sensitive data.

Gaining executive buy-in for a consulting project is a fundamental requirement. With the decision-making authority to approve projects and related spending, executives can also provide the political clout to remove obstacles that impede project progress. Additionally, their knowledge of corporate strategy and future organizational direction ensures the supply chain project is aligned with business needs.

Although the project will primarily reside within the supply chain function, broad engagement of other stakeholders is necessary. The finance group is the repository of pertinent data for the project. The marketing and sales team has the ear of the customer. Suppliers and retailers should be encouraged to voice their perspectives when a supply chain transformation project will affect their operations. Involving these groups will highlight their priorities, identify opportunities for differentiation, and promote buy-in to project outcomes.

Finally, there must be a willingness to act on project findings. A consulting project is just a costly and time consuming mental exercise until action is taken. To gain full value from the initiative, it is necessary to modify processes, adopt new technologies, and/or realign roles. In other words, think in terms of outcome, versus a report sitting on a shelf, to truly achieve success.

Wrap Up
Consulting projects present the opportunity to assess the current state of a supply chain and pursue substantial improvement in a rapidly changing industry. Success, however, is never guaranteed.

Before jumping into a rapid-fire series of supply chain modifications, it is necessary to step back and do some planning: think about the situation, resources, and requirements; clearly articulate why the support of a consultant is needed; evaluate options and select a consultant with appropriate expertise. Then begin with a supply chain assessment to clarify the true opportunities and avoid the obvious pitfalls to promote success.

A patient and deliberate approach will ensure an organization is ready to take on substantive consulting projects in its procurement, transportation, distribution, and technology processes. Key questions about supply chain project opportunities in these important areas will be answered in April’s Supply Chain Solutions column.

Read Part II
Supply Chain Consulting – Part 2

Asking key questions to achieve results

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Dr. Brian Gibson is executive director of Auburn University’s Center for Supply Chain Innovation and a former logistics manager. He is coauthor of Supply Chain Management: A Logistics Perspective (10th ed.) and active in supply chain executive education, research, and consulting.