Supply Chain Insights1 found that companies with
well-resourced, well-oiled CoE teams are more likely
to describe themselves as “strategic,” “proactive,” and
internally aligned and functioning from “the outside
in” or “from the customer back.” These companies
rely on their CoE teams (whether centrally or virtually located) to develop models; identify, propose, and
manage internal supply chain design projects; and
oversee supply chain-design consulting engagements.
SIX TIPS FOR DEVELOPING AN EFFECTIVE COE
On the surface, centers of excellence may sound like
a panacea for supply chain management challenges.
However, although they have provided significant
value for some companies and their supply chains,
they have proved less useful for others. The decision
to adopt a CoE strategy therefore comes with a few
notable caveats, and ensuring a CoE’s long-term
viability and sustainability requires some candid
self-analysis as well as proactive change management.
When done right, a CoE can be a valuable asset that
produces long-lasting benefits. With that in mind,
here are six guidelines for establishing a successful
supply chain center of excellence:
1. Start with a CoE readiness assessment. Before
you can begin to develop a CoE, you must know
whether you have or can acquire the skills and talent that will be needed to support it. That requires
undertaking an honest assessment of whether your
company has what it takes to operate a dedicated
CoE. Among the questions to ask yourself: Do you
have both the critical mass of work and the financial resources required to justify establishing and
maintaining a CoE organization? Are you capable
of developing high-performance teams? Can your
culture attract and retain people with analytical skills
