Supply Chains are run by people and must be designed accordingly.

We know that supply chains should be designed for the specific context of a business. There is no ‘one design fits all’ approach. This principle is indeed catching up and businesses are tweaking their supply chain design to suit their specific context. Their policies, processes, and practices all reflect this approach.

However, a key element that often gets missed is the current capabilities of their supply chain team. Are we expecting much higher level of capabilities from them? This issue is often the cause why some transformations either fail to deliver the promised benefits or create chaos and stress. The most notable is the case of using new digital tools, which require capabilities of a higher order to execute. Their teams are overwhelmed by the asks from them.

While capability development should be an ongoing improvement area, the design must, at any time, reflect the current capabilities with a little stretch, may be.