The Supply Chain Revolution: What’s Inside – Chapter 3

Art Koch’s Profit Chain® Tips
Volume 5 | Number 8 | August 2024

Continuing my What’s Inside the Book series – here I share what you’ll find in Chapter 3: Mastering the Fundamentals – The Bedrock of Supply Chain Management.

Let’s go!

Mastering the Fundamentals – The Bedrock of Supply Chain Management

Introduction to Mastering SCM Fundamentals

• Bridge the gap between the classroom and application
• Master the fundamentals before moving on:
  o   Inventory Accuracy
  o   Purchase order Acknowledgements
  o   Etc.
• Learning the importance of crawling, walking and running 

Art Koch’s Three “Fs” of Supply Chain Management

• The “Three Fs” model: People and Process Foundation, Structural Framework, and Financial Focal Point.
• The model serves as a closed-loop problem resolution to apply the plan-do-check-act process effectively.

Transforming SCM with Advanced Training and Core Competencies

• The importance of a rock-solid foundation in achieving long-term success in supply chain management.
• The significance of ongoing training and education in SCM to handle more complex challenges.
• The critical role of professionalism in SCM for achieving strategic objectives and sustainable improvements.

Real-World Application and Success Stories

• When getting the fundamentals right you will look like a genius
• Avoid chasing “silver bullet” solutions

Call to Action: Implementing SCM Excellence

• Evaluation of the functional foundation
  1.      Are the relevant few KPIs in place?
  2.     Are the functions siloed or do the “play” well together?
  3.     Is SCM considered procurement, a singular department? Or a philosophical mission led by degreed professionals within various operational functions?
  4.     Etc.
  5.     Etc.

Watch the video below for Chapter 3: Mastering the Fundamentals: The Bedrock of Supply Chain Management