The challenge of internal misalignment

Abstract

Why focus on external integration in supply chains when companies are not aligned internally? Should we learn how to crawl before learning how to walk? Despite all their good efforts to improve supply chains’ contributions to corporate goals, supply chain managers are often frustrated about the lack of internal collaboration, understanding and acknowledgement. Peer functions, in particular sales, often limit the results of supply chain efforts and can be real hurdles; on the other hand, supply chain managers are not always the best at communicating or sufficiently involving peers they are dependent upon. An internal survey was conducted within a large European manufacturing group to assess the degree of alignment on existing and new priorities and initiatives across functional groups. Findings revealed dramatic internal misunderstandings and disagreements on both opportunities and existing priorities within the organisation. Findings were discussed with company management in four internal workshops, one with senior operations and supply chain executives, a conference of senior world-wide operations managers and two sessions with sales and marketing managers from a variety of countries. An agenda for improving alignment was then developed that centred on improving internal communication and improving the initiative planning process for greater supply chain effectiveness.

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