SUPPLY CHAIN STRATEGY

10 | R i g h t C h a i n ™ make joint progress. The inability to communicate naturally breeds frustration, blocks trust, and creates barriers to progress and creativity. RightChain™ is a common language and program that connects supply chain metrics, methodology, models, and managers. It starts with a common definition of the field – supply chain logistics. What is Supply Chain Logistics? To develop the definition of supply chain logistics, we’re going to break it into its component parts. We’ll start with logistics as the foundation. There are many definitions of logistics floating around out there. We developed a simple one nearly 20 years ago. Logistics is the flow of material, information and money between consumers and suppliers . A lot can be learned from the three phrases in that simple sentence. First, logistics is “flow”. Flow is a good thing! What happens to water when it stops flowing? Stagnation, scum, insects, and possibly death. What happens to blood when it stops flowing? The nerds in the group always say, “coagulation”. The non-nerds usually just say, “somebody dies.” The point is, when things stop flowing, something or someone dies (or loses their job, customers, and/or shareholders). In logistics three things need to flow,

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