Supply Chain Transformation: Building and Executing an Integrated Supply Chain Strategy – Book Report/Review Example

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This book is helpful for the companies, which need to transform their supply chain strategies. Chapter 1: transforming your supply chain Chapter 1 of this book defines supply chain strategy as a “… multiyear road map that starts the needs of your customers (1). ” In order for a company to meet its needs and expectations, it should implement an effective supply chain strategy. This is because the excellence of a company’s supply chain creates economic profits that are attached directly to the value of shareholders in public firms and to the equity of owners in private firms.

Economic profit refers to the profit that is less the capital that a company needs to generate the profit (Burch & Lawrence, 2007). Dittmann argues that, the excellence of a supply chain, which is dependent on a compelling and clear supply chain strategy lead to the creation of economic profits, therefore the need for companies to implement good supply chain strategy. Although supply chain strategy is among the effective strategies that ensures the success of a company, most studies assert that a great percentage of today’s companies do not have a supply chain strategy.

According to Dittman, most companies lack a supply chain strategy, mainly because they lack enough resources to implement one. Out of the supply chain strategies that exist, 78% last for only three to six years and the rest 22% last for a very short duration. Perhaps most companies’ executives do not understand the meaning of supply chain. However, understanding the exact meaning of this term is obviously essential for development of a supply strategy (Burrows, 2012). According to CSCMP (Council of Supply Chain Management Professionals), supply chain is the management and planning of all firm’s activities that involves procurement and sourcing in a company.

Other definitions of supply chain depend on target such as, ensuring that the customers get the products the time they need them. Despite the benefits of supply chain strategy, most companies have not implemented one. The main reason why we have a few companies with supply chain strategy is that most companies lack enough time as well as resources. Additionally, some of the companies’ senior executives do not understand the exact meaning of supply chain.

Supply strategy implementation also requires expensive consultants and the development runs counter with the culture of a company, hence hindering many companies from implementing a supply strategy (Burch & Lawrence, 2007).


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Burrows, R. P. (2012). The market-driven supply chain: A revolutionary model for sales and operations planning in the new on-demand economy. New York: American Management Association.

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Sherman, R. J. (2013). Supply chain transformation: Practical roadmap to best practice results. Hoboken, N.J: John Wiley & Sons.

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