Beyond the Daily Firefighting

One of the many challenges of a supply chain leader is to ensure that strategic priorities and initiatives are accomplished while the important tactical and operational urgencies are addressed on a daily basis.

By ·

One of the many challenges of a supply chain leader is to ensure that strategic priorities and initiatives are accomplished while the important tactical and operational urgencies are addressed on a daily basis.

In the last posting I described the classic situation in which a procurement professional is responsible for “the whole ball of wax” for a commodity; namely, both the strategic and tactical responsibilities for that commodity. Inevitably, since the operational and tactical requirements need to be addressed in a timely manner without fail, the strategic activities (which typically offer the greatest long-term value to a company) do not get the attention they deserve.

In our experience, the best way to address this business reality is to segregate the strategic from the tactical (see the Figure below). This makes sense for a number of reasons:

  • the processes are very different (e.g. compare strategic sourcing with all of its components, to processing requisitions)
  • the performance metrics are different
  • the skill sets required for success are different
  • it ensures dedicated resources for each activity

A side benefit of proceeding in this fashion is that your personnel – once aligned with the activity that best suits their capabilities and interests - are often less stressed out and more productive.

image

About the Author

Robert A Rudzki
Robert A. Rudzki is a former Fortune 500 Senior Vice President & Chief Procurement Officer, who is now President of Greybeard Advisors LLC, a leading provider of advisory services for procurement transformation, strategic sourcing, and supply chain management. Bob is also the author of several leading business books including the supply management best-seller "Straight to the Bottom Line®", its highly-endorsed sequel "Next Level Supply Management Excellence," and the leadership book "Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise." You can reach him through his firm's website: www.GreybeardAdvisors.com

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Refining TMS Integration Outside the Four Walls of the Warehouse
How shippers can use a modern transportation management system (TMS) to successfully integrate across the supply chain ecosystem and create a truly digital network.
Download Today!
From the October 2017 Logistics Management Magazine Issue
A leading distributor of professional salon products in the U.S. forms unique partnerships with its key LTLs to lower transport costs, reduce its carbon footprint and improve service to its 565 store locations.
Q4 2017 Rail/Intermodal Roundtable: Improvements apparent; work remains
LM Viewpoint: Collaboration, Now more than ever
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
SalonCentric: One Beautiful Network
A leading distributor of professional salon products in the U.S. forms unique partnerships with its...
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...

34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...