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Formulating a Supply Chain Vision(John Gattorna
and Ming Tang)

• Tutor Gerry Glynn

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The Vision Statement

• Variously known as
• Charter
• Mission
• Credo

Few Organisations have a vision of the future
that guides and directs their activities every
day!
A Vision Statement should reflect both the
personality of the organisation and the dominant
logic of the operating environment
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Vision defined

• A vision statement is a qualitive (philosophical)
  statement that embodies a long-term view of what
  the organisation is, or is striving to become.
• The ideal vision should not only be creative, but
  also realistic
• It should encompass the aims and aspirations of
  the organisation, while being flexible enough to
  be adaptable to suit changing circumstances
• But specific enough to have impact on all the
  members of the organisations.
• Everyone should be able to interpret the vision
  down to the level of their respective role and
  job.

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Vision Statements
Most Vision Statements are useless ! They are of
the motherhood and apple pie variety Destined
for the inside cover of Annual Reports Designed
to stroke the shareholders They should be A
meaningful Statement Unique to the organisation
or Unit concerned Constructed with words that
influence the behaviour of people at all levels.
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Finding the Vision
For an ideal vision Individuals critically
analyse alternatives to arrive at the best
decision They are prepared to challenge each
other. They do not engage in Group Think
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Construction a Vision Statement

• A vision template has 4 components
• Contextual
• Business Definition
• Distinctive Competence
• Future indicators

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1. Contextual

• In what context is the particular unit operating?
• What role or unique contribution does the unit
  make to the larger organisation?
• Does the unit have an ongoing role within the
  parent organisation?
• Typically, the internal contributions of supply
  chains will be in terms of
• Cash generation
• Working capital reduction
• Ownership of the pipeline through which products
  move to market
• Custodianship of the inventory

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2. Business Definition

• The organisation needs to describe clearly
• What the business of the organisation is now?
• What business it is likely to be in the future?

Beware of the trap of Describing the business
in terms of what the organisation does from
day-to-day as this may and most likely will
change!
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Boundary definition
State of the Art

• Boundary of the business
• Customers needs / Technology / Geography/ etc.
  define the boundary of the business

Vulnerable Area
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3. Distinctive Competence

• What is Distinctive Competence?
• It is internal to the organisation,
• it is the essential skills, capabilities and
  resources
• that underpin the current and future success.

Distinctive competence is what an organisation
does best it is not easy to copy or emulate in
the short to medium term
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Acid test of an effective Vision

• Evolutionary rather than static
• Value system must be both implicit and explicit
• Never perfectly achievable
• Stretch and tension between what is and what can
  be -

An effective vision is energising, evolutionary,
passionate and consistent
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Internal Acid Test

• The Statement should be unique to the
  organisation
• Executives should be able to compare their
  day-to-day activities with the vision and assess
  whether they are working within the boundary.
• Within contribution to the attainment of
  objectives
• Outside waste of resources.
• CS

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External Acid Test

• Points to consider
• How well has your company managed to
  operationalise its Vision?
• How does the marketplace view your organisation?

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Communicating the Vision

• The vision must be communicated
• widely and consistently,
• so that everyone
• will act and react as planned

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How to get to the Vision operating strategy

• Supply Chain Vision
• Responsive to customer needs - better service
• Optimised industry processes, operations ands
  costs - saved
• End-to-end visibility of all data
  forecasts,orders, costs, decisions, deliveries,
  KPIs etc.

Outcomes
Supply Chain Performance and Values

• 4 guiding principles
• Business-led
• Segmented
• Cost aware
• Integrated

Managed Change

• Today
• Islands of excellence, but
• Major issues and gaps,
• especially at interface

Capabilities
Supply Chain people processes and technology
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Conclusion

• Developing a unique vision for the enterprise is
  exceedingly difficult, But it must be done and
  done well. (John Gattorna 2003)

1 Service either No 1 or No 2 Globally 2
Technology based 3 No 1 in customer
responsiveness
Source Welch, J. (2001), The Vision Thing,
Jack what Ive learned leading a great company
and great people, Headline Books Publishing,
London,