Robert (Bob) Sabath not only likes to break
the rules, he’s made a career out of helping others do the same. A long-time supply chain consultant, Sabath believes that
achieving true supply chain breakthroughs
often means flouting the conventional wisdom about how a supply chain should
operate.
Currently a principal at the boutique consulting firm Trissential, Sabath previously
worked for such leading consulting firms as
A. T. Kearney and Mercer Management (now part of Oliver
Wyman). He is a frequent speaker on customer service and
supply chain management, has written for more than 40
business publications, and has edited two books.
Throughout it all, Sabath has distinguished himself
through his sense of humor. Among numerous other
awards and recognitions, Sabath was honored as the
“World’s Funniest Management Consultant” by the Journal
of Management Consulting in 1985. Although Sabath himself downplays the achievement—“I found out that management consultants are not very humorous,” he says—the
accolade did lead to a feature-length profile in The Wall
Street Journal. “Ever since that experience, I have been
thoroughly convinced that humor opens doors, relaxes
people, assists in communications, and builds relationships,” Sabath says.
QWhat are some of the biggest changes you’ve seen during your career?
A I have seen the transition of supply chain from trans- portation and inventory efficiency, a backroom function, to being the network that integrates everything from
the supplier’s supplier to the customer’s customer. I have
seen supply chain move from that back room to become
a required step in the career development of most CEOs.
And now, when I meet strangers, they know what’s meant
by “supply chain.” Most important, share-
holders, owners, investors, and competitors
know that the effectiveness of the supply
network is one of the most important drivers
of business success.
QWhat hasn’t changed?
AHuman resistance to change and the pain experienced. Everybody is happy
to support change—as long as it is happening to someone else. Because supply chain improvements inevitably cause change to other areas, we often pay
double.
Additionally, there’s been a continuing lack of change in
three surprising areas. First, there remains a belief in old
wives’ tales, those silly truisms that drag down the results
of supply chains. Second, in far too many places, there is a
preference for efficiency over effectiveness, which translates
into a preference for doing things right, before doing the
right things. Finally, there has been a continuing dramatic
gap between the results of supply chain leaders and supply
chain laggards. I have never been able to figure out why the
laggards are willing to spend so much to get consistently
sub-par results.
QWhat are some of the truisms that should be forgot- ten? In other words, what rules do companies need to
break?
ASome of my favorites are: “We treat every customer equally” (which means we treat our worst customers
the best, and our best customers the worst); “We ship every
parcel immediately” (without recognizing that holding
parcels for consolidation causes shipments to get to customers faster and at a lower cost); and “We never stopped
our focus on cost reduction” (which often describes a preference for forgetting about a focus on profit, often with
Robert Sabath
QWhat has been the most satisfactory accomplishment or project in your career?
A I would say the construction of our new omnichannel distribution center in Braselton, Ga. It is now the focal
point of our distribution strategy. We wanted to aggregate
our inventory platform, which had been housed in three
places, into one facility. It now serves wholesale, retail, and
e-commerce, which is our fastest-growing channel. We
operate a tightly modeled supply chain, which was why we
went into this highly automated facility.
QWhat are the biggest challenges supply chain profes- sionals will face in the next five years?
A We all face the challenges of mitigating rising inflation in Asia against more stagnant inflation or deflation in
North America and Europe. For my company, it is also balancing how we serve our channels. We have to serve each
channel as if it is our best channel.
QWhat advice would you give to someone about to enter the profession?
A Get a diversified range of experience. The best supply chain people I have come across have experience in
sourcing, inventory management, distribution, and logistics. Seek experience in all aspects of the supply chain management profession.
