Implementation strategies
Maxwell spoke in favor of what he called the productivity loop: Lower costs, then lower prices, sell more units, increase profits, and repeat. Wal-Mart is working on accelerating the number of times it exercises that loop.
Inventory optimization often is overlooked, Maxwell said. In a pyramid design, inventory policies are on top, achieved with collaboration and integration. Below that are forecasting and event planning. The pyramid base is made of supply chain fundamentals, such as lead times, performance metrics, and order constraints.
Often supply chain implementations begin with an internal sales effort. Educating organizations about the power of supply chain management is part of what practitioners need to do, Maxwell said, to ensure capital for upgrades when they're needed. "You need to market the concepts within your organizations."