Author of the bestselling text Supply Chain Management, John T. Mentzer's companion book Fundamentals of Supply Chain Management: Twelve Drivers of Competitive Advantage has been developed as a supplemental text for any course dealing with strategy and supply chains. Written in an entertaining, accessible style, Mentzer identifies twelve drivers of competitive advantage as clear strategic points managers can use in their companies. Research from more than 400 books, articles, and papers, as well as interviews with over fifty executives in major global companies, inform these twelve drivers. The roles of all of the traditional business functions—marketing, sales, logistics, information systems, finance, customer services, and management—in supply chain management are also addressed.
Chapter 13: Align Your Supply Chain Strategies and Your Reward Structures
Align Your Supply Chain Strategies and Your Reward Structures
There is a basic principle of organizational behavior (Mentzer & Bienstock, 1998a):
What gets measured gets rewarded, and What gets rewarded gets done.
But what happens when we pay our people to do the wrong things? Let's recall what happened to Company CC. Company CC is in the clothing business. ...