The Supply Chain Revolution: What’s Inside? Chapter 2

Art Koch’s Profit Chain® Tips
Volume 5 | Number 6 | August 2024

Continuing my What’s Inside the Book series – here I share what you’ll find in Chapter 2: Building Professionalism in Supply Chain Management.

Building Professionalism in Supply Chain Management

The Critical Role of Supply Chain Management (SCM)

• Introduction to the significance of SCM in modern business environments.
• Highlight how SCM impacts 50 to 65 percent of the cost of goods sold, emphasizing its economic and operational importance.
• Too often, it is a mere footnote.

Professionalism in SCM: A Non-negotiable Requirement

• The parallel between learning to scuba dive and mastering SCM requires an unwavering commitment to foundational principles.
• The risks of neglecting SCM fundamentals, leading to operational setbacks and financial devastation.

Building SCM Professionalism to Drive Business Success

• Introduce the concept of treating SCM as a professional discipline, akin to Certified Public Accountants (CPA) or Professional Engineers (PEng).
• Would you take a scuba diving course from a non-professional?
• Would you have a non-certified mechanic to fix your Lexus, Mercedes-Benz, or Porsche? No!

Dive Master Briefing – Case Study Highlight: Real-world Impact of Professional SCM

• “Anyone” can cut a purchase order.
• EBITDA increase of $18.5 MM and valuation increase of $150 MM

Art’s Deep Dive – Call to Action: Elevate Your SCM to Achieve Excellence

• Is SCM treated as a profession in your business?
• Does SCM have the necessary face time with executive management.?
• Is the ROI for developing skills and professionalism for SCM understood?
• Is there an understanding that professionalism and training are needed to bridge the gap between textbooks and real-world applications in SCM?

Watch the video below for Chapter 2: Building Professionalism in Supply Chain Management