In a recent online article on S&OP at Sony, http://www.supplychainquarterly.com/topics/Strategy/scq201101sony/, Vice president of Supply Chain Operations Yuka Yu uses the term ‘trusted chain’ rather then supply chain. According to Yu, this term emphasizes that the strong relationships between Sony and its partners depends on mutual trust and communication. As many of us will know, implementing CPFR and S&OP like Sony did, requires internal and external trust.
As Stephen Covey points out in his book ‘The speed of trust’; wherever trust goes up, speed goes up and costs go down. Wherever trust goes down, speed goes down and costs go up. Covey gives other strong support to the idea that having a culture of trust in your organization will pay off. Without trust in your organization, S&OP, IBP, or any cross functional process for that matter, will never be effective.
Now having a high trust organization is one thing, but being able to extend that trust with your partners in the supply chain through CPFR, is another more complex step. It seems Yu is taking her organization there. That’s what I call supply chain vision and leadership.
In a 2009 blog, https://supplychaintrends.wordpress.com/2010/02/15/the-behavioural-supply-chain/, I advocated the term ‘behavioural supply chain’ to emphasize that we’re almost done optimizing the supply chain if we won’t be able to improve our understanding of the behavioural supply chain. As most of the behavioural supply chain is driven or improved by trust, I might just have to go with Yu’s terminology ‘the trusted chain’ and start advocating this.
What do you think about the ‘trusted chain’?