If supply chain management is a journey, then one needs a compass to help guide towards the destination.
ChainLink Research’s 3Pe framework encompasses the fundamental elements essential for navigating through the supply chain transformation.
Taken together, the 3Pe elements help provide a holistic perspective and reveal how they are interwoven together. This lack of balanced perspective is the root cause of many difficulties encountered in the supply chain journey. In contrast, achieving a 3Pe perspective helps align supply chain strategy with the CEO agenda and provides tremendous synergies to aid the transformation process.
Policy: A firm's policies are the tangible and specific manifestation of its vision, strategy, and culture. For example, internal policies govern how customers, suppliers, and employees are treated, whereas external policies include industry and government regulations that companies must abide by. Policy decisions rest at the executive level and ultimately determine the future of the enterprise—whether it is to be a stagnant bureaucracy or a vibrant, agile, and effective team.
Process: Of the numerous activities that encompass the end-to-end supply chain, ChainLink places particular emphasis on the “Link Processes,” i.e., the inter-enterprise, bi-directional supply chain processes between trading partners—which is key to determining the winning strategy in a multi-enterprise supply chain.
Performance: Managing performance is the foundation of competitiveness and success. The virtualization of the supply chain and extreme out-sourcing has changed the center-of-gravity for performance concerns from an internal focus to an end-to-end supply chain view.
Enablers: While advanced technologies are critical to enabling advanced supply chain models, delivery architectures have largely consisted of implementing software behind the clients' firewall. However, in the context of "managing the links", ChainLink sees a rapid evolution towards a broader perspective where a combination of third-party services and service-oriented architectures are redefining traditional supply chain roles—and further fueling the structural changes in the business ecosystem.
||ChainLink Concepts & Viewpoints:
1) Supply Chains are MARKET DRIVEN, where the final customer drives the strategy of the end-to-end supply chain.
2) A winning strategy is based on effectively managing the LINKS between the participating entities in the supply chain.
Traditional 'how-did-we-do' metrics are an indicator of past performance, and is a local and narrow view. To succeed, companies need a FORWARD-looking approach and a GLOBAL view across enterprises to detect and prevent costly supply chain glitches.
No enterprise is an island. COLLABORATION has always existed. The real issue now is to make it work effectively for you.
5.TECHNOLOGY is needed to support the links. However, not having a clear understanding of the link requirements often leads to poor technology choices.
6. The shift from enterprise-centric supply chains to managing an ecosystem of partners requires new and ADVANCED business models. And the nature of these models doesn't fall into traditional industry-oriented classifications.