SCDigest Editorial Staff

SCDigest Says:

It’s natural for companies to have a supply chain orientation that springs from their headquarters or primary market perspective, but if carried too far, that can really hurt global supply chain effectiveness and limit valuable input that can drive improvements. What do you say? Send us your comments here

Do North American companies, and their European counterparts, often fail to fully embrace the needs and insights of their supply chain and logistics peers in other parts of the globe?

The answer is definitely Yes, says Supply Chain Digest editor Dan Gilmore.

“I have attended global supply chain or logistics meetings at several companies this year, and found one recurring theme – many managers in global locations, especially in developing countries, feel like somewhat second class citizens,” Gilmore says.

It’s natural for companies to have a supply chain orientation that springs from their headquarters or primary market perspective, but if carried too far, that can really hurt global supply chain effectiveness and limit valuable input that can drive improvements.

Common issues companies face in this area include:

• Supply chain or logistics processes and “best practices” that are developed from an overly North American perspective. What works here is rarely optimal for Eastern Europe or South America, for example.
• Similar problems with supply chain software development: requirements are developed from a home country perspective, and the real needs of international units that will, ultimately, also receive the software are not well gathered or considered.
• Slow software rollouts: international units receive new software deployments sometimes years after the home market, so that global supply chain technology is always out of sync.
• Failure to really understand the unique operating requirements of different regions. Home country managers often hear, but don’t really listen to international challenges and constraints.
• “Not invented here syndrome” – home country managers often don’t take advantage of the supply chain and logistics insight their international peers can offer in what should, for most companies, be a truly global supply chain orientation.

“Once a year we come to a global logistics meeting, but the dialog is way too one-sided,” a logistics manager from a large industrial equipment maker located in Eastern Europe recently told SCDigest. “We really come to hear what the U.S. is doing and what technology they are going to give us when, not to really collaborate on the most effective ideas.”

Gene Tyndall, SCDigest contributing editor who has worked with hundreds of companies on global supply chain issues, agrees many companies could do a better job of including the needs and input of global managers.

“This issue has intensified in recent times as companies have become more “lean” and have reduced international travel for training, meetings, and team-building programs,” Tyndall said, “Headquarters people have less opportunity to learn and understand other cultures and markets, and e-mails, conference calls, and video conferences are inadequate for this purpose."

The key takeaway: take a look at your supply chain processes design, technology strategy, meeting agendas and other components that drive supply chain strategy to ensure the needs of global operating units are adequately considered, and that there are defined mechanisms to acquire and utilize feedback from international managers on requirements and ideas for improvement.

Do you agree or disagree? Share your perspective by emailing us at feedback@scdigest.com