Discussing global supply chains with Institute for Supply Management’s Lisa Martin

June 15, 2007

VentureOutsource.com talks with Lisa Martin, board chair for the Institute for Supply Management (ISM) (www.ism.ws).
Ms. Martin is also vice president, global sourcing, with Pfizer.

ISM is the largest supply management association in the world with a mission to lead the supply management profession through its standards of excellence, research, promotional activities, and education. Transcripts from that discussion follow.

VO: In 1955, more than one-half of the world's manufacturing took place in the United States. Today, the US performs only a portion of the world's manufacturing yet the US has the highest concentration of OEM companies in the world. As organizations become more global, this internationalization translates to companies with extended international supply chains. Beyond US borders, other countries also have companies engaging in cross-boarder commerce with global supply chains. As supply chains worldwide become broader in scope and more complex, what do you feel are the most important criteria, or metrics, supply chain executives should put in place to measure whether or not their supply chains are successful, and why?

Martin: Effective strategic supply chain measures should include:

• Price/cost measures
• Revenue measures
• Inventory measures
• Workforce measures
• Supplier performance measures
• Customer satisfaction measures

Supply chain performance measures must be aligned vertically with corporate goals and horizontally with other strategic business units within organizations. Supply measures must also be supported by the organization's top leadership.

Lisa Martin Board Chair Institute for Supply Management (ISM)

Supply measures must be transparent and communicated clearly to others throughout the organization and must be supported with the appropriate levels of resources, including any internal systems needed.

Supply chain measures must also be closely tied to performance-based incentives.

    

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