The supply chain begins with procurement of raw materials? Where does it end? It doesn’t with the consumer!

Everyone agrees that the supply chain for any particular product begins with the procurement of raw materials. If you are producing a printer, you need plastic, ink, electronics, metal and other components. These are sourced from raw material suppliers or from other suppliers further up the supply chain. Raw material suppliers sell plastic pellets, steel in rolls, or electro...

Through most organizations the supply chain is disconnected. Each function manages its own P&L and logistics functions. Each part of the organization has its own goals and reports their results up to management. The purpose is to maximize the results for each individual group, thinking that this will improve the entire organization. But there is no thought to the negative effect on the whole organization or the affect on the customer. The individual groups focus on cost efficienc...