Strategy is not a Spectator Sport: Supply Chain Planning’s Role in Strategy

Supply chain planning is tactical and operational by nature but many companies overlook the role of Supply Chain in strategic decision making. In this article I discuss why the supply chain planning function is uniquely positioned to assess the impacts of strategic decisions like outsourcing vs insourcing, capital investments in manufacturing sites, and new product launches. With real life examples from my time working in the Pharmaceuticals industry, I argue that our discipline understands better than anyone the risks and opportunities associated with large scale initiatives and the implications for inventory, customer service, cash flow, and EBITDA. Further, I recommend that for organizations where Supply Chain is purely tactical and operational, efforts must be made to earn a seat at the strategic decision making ...