Part 2: Unlocking critical capabilities in supply chain through an operating model transformation
Posted by Eileen Radis, Lynn Gonsor, Paul Atkins, and Kurt Banas on January 15, 2020.
In Part 1 of our series, we looked at how supply chain is rapidly becoming a key strategic function across the health care provider ecosystem. Today, we discuss unlocking critical capabilities in the supply chain through an operating model transformation.
Only 38 percent of executives say they are very or extremely confident that their supply chain organization has the capabilities it needs today.[i] This fact is garnering significant attention in the health care sector, as more business leaders begin to understand the strategic significance of supply chain as a powerful way to impact the bottom line and prepare for the Future of Work. As a result, savvy supply chain executives should be focused on developing high-performing, adaptable teams to be able to create and deliver more-advanced supply chain capabilities and drive value. This often requires reorganizing the function from the top down through an operating model transformation, which we loosely define as ensuring the right skills, in the right place, in the right amounts, at the right time. Basically, you can’t drive innovative and leading-edge approaches through ineffective decision rights, structures that are dated, and a view of supply chain that is merely transactional.
To provide executives with an overview of what a supply chain operating model transformation might entail, this post touches on three topics: (1) supply chain capabilities needed in the future, (2) operating model components that should be considered in times of transformation, and (3) the factors that can make a supply chain transformation achieve the expected results.
Continue reading “Transforming the supply chain for health care providers Part 2”