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Supply Chain Management is alive and well!
Arthur Koch Arthur Koch
Miami , FL
Friday, June 21, 2019


Art Koch's Profit ChainTM Series

Supply Chain Management is alive and well!
Volume 2 | Number 6 | June 2019
This was originally posted on my blog in January 2019.  I still think it relevant today.

I recently read the June 2018 HBR article "The Death of Supply Chain Management"

Shocking….to say the least.

I liken this article to the mid 1980's and the push for "Lights Out" manufacturing.  Are they shouting from the same roof top?  Have not educators and professionals alike learned that lights out manufacturing has an extremely limited application.  And here they are sounding the same horn.  I can hear it now, "The Light's Out Supply Chain" or "The Autonomous Supply Chain".

If the authors' objective was to get our attention, they did. However, they missed significant historical lessons. Nothing can replace human tactile/touch of making the pieces fit together.  Just ask Elon how his autonomous factory is working.  How many truly believe there will be 100% autonomous networks of vehicles roaming our roadways. Not many…we like driving and conditions change too often.

They've missed a critical point: SCM has been a 2nd class citizen within organizations for years and never let loose to show its true potential.  And NOW with big data, AI, and better analytics we have moved to the front of the bus. 

It's time for SCM leaders to invest in themselves, organizations to invest in SCM as professionals. SCM is a profession just like CPAs and engineers.  As we move to the front of the bus, we as leaders in SCM must demand more professionalism within our profession.

simple or complex keep it easy or simplify solve difficult problems with simplicity or complex solution no difficulty 3D_ illustration
The authors are correct, in there are significant benefits to AI and linking; sales, demand planning, inventory optimization and replenishment planning.  However, there must always be a strategy, vision and professionalism to "right the ship".

SCM welcome to 1st Class!!!  Let's act like we belong and let's not blow the opportunity to show the world what integrated SCM can achieve. 

It's a great time to be part of this transformation.

How can you become part of the Supply Chain Management transformation Party?
  1. Get your supply chain degree and/or certification.
  2. Exude professionalism. 
  3. However, thats not enough.  Build your critical thinking skills.
  4. Understand how to build, correct and maintain the SCM foundation. i.e. navigate the fundamentals.
  5. Build leadership and communication skills.  They will be absolutely critical during this time of transition.
  6. Have strong analytical skill, with the ability to transform change.

Welcome to 1st class!


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Inventory Is Evil!™
in·?ven·?to·?ry / 'in-v?n-?t?r-e / noun
Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale.

in·?ven·?to·?ry is evil! / 'in-v?n-?t?r-e  is  'e-v?l  / phrase
Left unchecked inventory has many negative unintended consequences to profitability.

It hides problems; therefore, it delays fixing problems!  

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Thanks in advance for your time. As always, thanks for being a loyal client. Looking forward to helping you and your team again soon.

Carpe diem,

Art Koch

Arthur Koch Management Consulting, LLC


+1 (336) 260-9441

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Arthur Koch
Miami, FL