SCDigest editorial staff

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Noted supply chain academic Dr. Hau Lee of Stanford recently summarized his takeaways from the Global Supply Chan Summit he hosted last fall. While focused in a sense on the electronics and high tech sectors, they are worth pondering for all supply chain managers.

1. Empowering Lean supply chains: We are only just starting to evolve Lean principles from the factory to the larger supply chain. Celestica, a contract manufacturer, has implemented Lean concepts beyond manufacturing. It has applied the concepts to procurement, services, human-resources management and many other processes, and is now working with its suppliers to help them develop their own Lean operations.

2. Two-dimensional scope expansion: Be sure you are looking both at the basics of improved supply chains, such as better integration with suppliers, as well as the long-term view of how to build a supply chain that can maintain continuous improvement and consistency.

3. Sense and respond : Companies need to be fast in "sensing" what is happening to their supply chains, and be fast in creating and executing the right response. Visibility, RFID and related technologies all play a role here – but you have to be able to separate ”noise” from what’s really important.

4.Managing transitions and organizational learning: Here is an interesting thought: “The only sustainable advantage [in a supply chain] is the rate of learning."

5 . New paradigm: socially responsible supply chains: We’ll see continued pressure and company moves on the environment, ethics, supply behavior, etc.

• Architecting the right supply chain: Different supply chain for different requirements, but built on a common “platform” so that the cost and complexity is not too high.

• From AAA to AAAA: No, not batteries – in the past, it was agility, adaptability and alignment. Lee now adds a fourth: architecting value into your supply chain.

This seems like a pretty good list of overall supply chain themes to us. Full thoughts from Lee are available at the link above.

What would you add or detract from Dr. Lee’s list? Let us know your thoughts.