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The end-to-end supply chain typically needs management skills and roles that did not exist previously (see Figure 3-11). Given the relative newness of some of these positions, your human resources department may not know how to find the people you need or how to screen them effectively without some support from your organization. To ensure that you have the right people in the right positions, put together a description of your supply chain strategy, a description of each key role, a clear definition of available career paths, and a comprehensive hiring plan. This is not to say that every reorganization requires a major workforce turnover. Most supply chain organizations have only a few extremely critical roles before or after an overhaul. These are the jobs that require specific qualifications, and you shouldn t settle for less. Current employees, with appropriate retraining or coaching, can fill most of the other roles in your new organization.
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CHAPTER 3 Core Discipline 3: Design Your Organization for Performance
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New Role Key Required Skills Ability to negotiate strategic alliances and partnerships Ability to drive best-in-class performance from supply chain partners Ability to inspire individuals within various organizations to work collaboratively Ability to manage across continents Ability to manage ongoing relationships with key suppliers and to execute the global supply chain strategy for products purchased from these suppliers Ability to structure the supply base to achieve the lowest total cost of ownership Ability to manage suppliers through objective measurements and regular generation of formal supplier scorecards Deep understanding of the customer s business and channels Suf cient understanding of supply chain operations to ensure implementation of core processes that support customer requirements Thorough understanding of supply chain best practices Ability to inspire individuals within multiple functions to work collaboratively Ability to recognize opportunities for process improvement and appropriate automation Thorough understanding of supply chain metrics and appropriate methods for target-setting Ability to institutionalize metrics-driven reviews and continuous improvement programs
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Supply Chain Process Improvement Manager Plan Supply Chain Performance Analyst Plan
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Owens Corning Profile: Reorganizing for a Bright Future
The big squeeze of its core industry segments cost inflation and price deflation led Owens Corning to rethink its supply chain organization and processes in order to understand the impact of these elements on its ability to be competitive and customer-facing enterprisewide.
Based in Toledo, Ohio, Owens Corning (OC) has manufacturing facilities in more than 25 countries and 165 distribution centers. It s a $5 billion market leader in building-materials systems and composites solutions known for its innovative portfolio of products it invented glass fiber and glass-fiber insulation over 50 years ago. Approximately 80 percent of the company s revenues come from its building-materials portfolio of products and systems that are sold through distributors, contractors, and large national retailers mainly in North America. Composites account for the remainder of revenues and are used in the automotive, telecommunications, electronics, and construction industries in a global market. As big as it is and as well known as its brand is, however, OC has faced increasing competition within key markets because of globalization and industry consolidation in recent years. We must be able to compete on more than price, notes Sue Hatfield, the company s director of strategy and integration for supply chain and technology. Our greatest challenge is providing low-cost flexibility to meet increased customer demands. This is a turnabout for the industry. Building products is a process manufacturing industry and is highly asset-intensive, making use of assets
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Strategic Supply Chain Management
and production efficiency the primary success factors for competing in the marketplace. Traditionally, flexibility has not been considered a key factor but increasingly is becoming one. OC is organized into business units, each with its own commercial, sales, and supply chain processes and facilities. Having many business segments within the business units, the company struggled as supply chain requirements got more demanding. In the past, the company had a substantial level of redundancy in processes and personnel across business units and had inherited multiple legacy software applications that were poorly integrated. These factors created a lack of data integrity/integration at the enterprise level. This was seen as a key contributor to the increasing problems that OC was experiencing, such as inaccurate demand forecasts, poor planning, overall customer dissatisfaction, and high-cost supply chain operations.
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