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APICS SCC Study Defines People and Partner Impact on Supply Chain Complexity


September 01, 2015 (Business Wire) Supply chain excellence depends on the alignment of physical resources and social relationships for optimal performance CHICAGO--(BUSINESS WIRE)-- Today APICS Supply Chain Council (APICS SCC) released its latest industry report that sheds further insight on the intersection of supply chains and complexity theory. Complexity Theory, Sentiment and Supply Chain Organizational Behavior discusses ...



Supply chain excellence depends on the alignment of physical resources and social relationships for optimal performance CHICAGO--(BUSINESS WIRE)-- Today APICS Supply Chain Council (APICS SCC) released its latest industry report that sheds further insight on the intersection of supply chains and complexity theory. Complexity Theory, Sentiment and Supply Chain Organizational Behavior discusses the human perspective and the individual and trading partner relationships that are sometimes not sufficiently visible in supply chain management. “We see supply chains in terms of intricate but predictable flows of products, process, information, and finance,” said Peter Bolstorff, APICS SCC executive director. “However social relationships (both personal and organizational) between suppliers, producers, distributors, and customers—all of whom have their own needs, goals and strategies—create another dimension in an already complex supply chain system. These factors can ultimately result in unpredictable challenges that need to be overcome.” The APICS SCC report describes the difference between complicated and complex supply chains as follows: Complicated: If supply chains were fully automated machines, then the flows of products (or services), information and finance would merely be complicated. Complicated systems have many moving parts that interact with each other in fixed or tightly defined and predictable ways. Should a breakdown occur, it is typically possible to make repairs by restoring the broken component. Examples of complicated systems are mechanical wristwatches or jet engines. Complex: Complex systems have many moving parts that interact, but these parts do not have fixed interactions and dependencies. In most supply chains, partners and stakeholders do not behave like gears in a machine. Their behavior and decision-making processes are not fixed. Changes in relationships can produce subsequent changes in decisions, plans, trust, and confidence that can produce effects elsewhere along the supply chain. Managing complexity across the supply chain ecosystem Today’s supply chain professionals must thrive in complex systems and add value by working with, not against, complexity, which calls for a combination of supply chain management and leadership, as well as insight into supply chain organizational behavior. The report identifies sentiment as a means to manage complexity, which it defines as enduring but not permanent attitudes toward partners and practices in a supply chain system. It is a tool for learning ways complexity and relationships may be evolving, capturing human opinions, changing confidences and identifying perceived challenges and new variables among supply chain partners. Effective supply chain professionals watch for potential causes of changing relationships. Capturing supply chain sentiment on a regular basis can offer early warnings of this potential and allow for communications with partners, and analysis of potential impact to supply chain performance. “Fundamental to APICS is the understanding of both the supply chain professional and the supply chain organization; we try to add to that body of knowledge every day,” said Bolstorff. “Today’s report allows us to better define the impact of relationships on supply chain performance and use the tenets of complexity theory to more effectively manage to desired outcomes.” To learn more about supply chain complexity theory and view the full report, please visit apics.org/complexity. To see how the concepts are applied, download the SCOR app and click through the people section of the framework. About APICS APICS is the premier professional association for supply chain and operations management and the leading provider of research, education and certification programs that elevate supply chain excellence, innovation and resilience. APICS Certified in Production and Inventory Management (CPIM), APICS Certified Supply Chain Professional (CSCP) and APICS Supply Chain Operations Reference Professional (SCOR-P) designations set the industry standard. With over 43,000 members and more than 300 channel partners, APICS is transforming the way people do business, drive growth and reach global customers. For more information, visit apics.org. About APICS Supply Chain Council APICS SCC is a nonprofit organization that advances supply chains through unbiased research, benchmarking and publications. APICS SCC maintains the Supply Chain Operations Reference (SCOR) model, the supply chain management community’s most widely accepted framework for evaluating and comparing supply chain activities and performance. APICS SCC enables corporations, academic institutions and public sector organizations to address the ever-changing challenges of managing a global supply chain to elevate supply chain performance. APICS SCC is part of APICS, the premier professional association for supply chain and operations management. Visit apicsscc.org to learn more. View source version on businesswire.com: http://www.businesswire.com/news/home/20150813005127/en/ INK Public RelationsBlair Poloskey, 512-382-8983blair@ink-pr.com Source: APICS SCC


 
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