From Managing the Supply Chain to Orchestrating a Global Operating Network

IndustryWeek ( O'Keeffe, Vice President, Strategy & Marketing, Advanced Innovations) - Rather than 'managing' the supply chain, companies need to deftly 'orchestrate' its many interconnected resources and participants.

The classic concept of the supply chain is fast becoming obsolete. Chains tend to be cumbersome and over-engineered -- hardly the right metaphor for today's highly fluid, dispersed global marketplace. A far better image for the 21st century is a global operational web or network. And rather than 'managing' it, today's savvy business executives need to deftly 'orchestrate' its many interconnected resources and participants as they seek the optimal way to go to market.

Configuring and orchestrating a global operational network enables businesses to operate with speed and agility, accessing specialized design talent, manufacturing in remote low-cost environments, distributing with close-to-the-customer efficiency, getting to market faster with innovative products and services and, ultimately, limiting the need for building and maintaining a costly physical infrastructure.

Here are seven success principles for effectively 'orchestrating' a global operational network:

1. Involving Partners Early
2. Transparency Via Technology
3. Networking Across the Network
4. Modeling for Momentum
5. Relationships Really Matter
6. An Adaptive Infrastructure
7. Global Product Lifecycle Management