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PART III. 


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People Don't Resist Change

We often site conventional wisdom, that "people resist change." I believe that conventional wisdom is wrong. Would you resist a pay raise? I doubt it. Did you wear the same clothes you wore yesterday? Hardly. So people don't resist certain kinds of change. Instead, I have found it helpful to think in terms of resisting loss.8 People don't resist change itself, they resist the perceived loss that the change will bring. They may fear the loss of job security, of being the expert in their field, of familiar surroundings.

This fear of loss is and will continue to be a barrier to the formation of supply chains. Corporate leaders may fear the loss of control that supply chains may bring. The answer to "Who owns what?" will be difficult to determine. Workers in infant supply chains are often concerned with "Who do I work for?" questions.

Supply chains blur the distinctions between companies; in the past it was very clear where one company ended and the next company began. With the sharing and synergy between companies required by supply chain formation, the distinctions get blurry at the edges. Managers who once had clear spans of control will find themselves having to work collaboratively, acquiring authority by consensus rather than by decree. Ownership issues will arise as emerging supply chains acquire resources for joint use in the chain. People who get their pay check from one corporation may find themselves with offices, associates, and a sense of belonging provided by a totally different company. As supply chains grow, we will find more and more people working in those dizzy spaces between the organizations in the supply chain. There will be resistance to the perceived loss these changes will imply.

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Technical Barriers

One of the primary fuels in the engine of the global economy is information technology. The global economy would not be possible without ubiquitous computers, high speed data communications, data base management technology, and systems that facilitate the human/computer interface. Yet, because standards in the information technology field have been slow to evolve, each corporation in an emerging supply chain will potentially have a different flavor of technology that will not be easy to interface. How to share information across different hardware and software platforms will be one of the significant barriers to the formation of supply chains.

Beyond the purely technical issues of interfacing hardware systems, there will be problems integrating the various philosophies of running a business. These philosophies are represented in the design of the information technology systems being used by individual companies. The APICS body of knowledge has gone a long way toward defining a standard way of looking at production control, inventory management, distribution logistics, and so on. These represent a basic common denominator on which to build. But to reach the next level of competitive ability, companies in a supply chain will need to move beyond the common denominator to philosophies and information technology designs which are focused on the specific needs of the supply chain.

It is important to distinguish, here, between companies that are trying to develop an initial information technology system to support the business, and those that are moving to the next level. Oliver Wight noted that "the logic of manufacturingis universal. Since the logic is standard, the system must be standard, or it will not represent the way the business really runs."9 For companies starting out, struggling to understand the "logic of manufacturing," Wight's com­ments ring true. My experience, however, has shown that, while the logic may be consistent, differences in products, markets, cultures and so on change the requirements and thus the design of information technology systems. l° The logic may not change, but the design of the data and the human interfaces to the technology do change considerably.

Learning to Share

Beyond issues around interfacing technology and philoso­phies that drive information systems, the simple question of "What should be shared?" must be answered. Think of an example: Two people work in the same office. To communicate, they write each other memos. Even through they sit side by side, they never speak, they never look at each other, their only communication is written. Will they be able to work? Yes, of course. Much of the business of business is communicated in writing. Will they be as effective as possible? Absolutely not! There is so much more that could be shared between the two workers that would draw them more closely together and allow them to work better as a team.

This analogy applies to corporations in the supply chain. One way to develop supply chains will be by sharing limited amounts of information in restricted formats. But to become truly effective, corporations in a supply chain must learn to work closely together, to share abundance rather than scarcity, to learn to work together as a team. This will not be easy, but in working together to determine what to share, companies will be taking a step in the right direction.

To be Continued


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