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40 DC VELOCITY JULY 2014 www.dcvelocity.com
T. Michael Ray brings long experience in
international finance to his role as vice
president for business integration and strategy for IBM’s Integrated Supply Chain. It’s
experience he believes serves him well in
overseeing Big Blue’s vast international supply chain. Ray leads strategy, planning, and
transformation for all areas of IBM’s global
supply chain. That includes the business
management system, performance metrics,
employee skills and development, supply
chain analytics, supply chain environmental and social
responsibility, and global asset management.
Ray has served in several senior executive financial positions for IBM both in the U.S. and abroad.
QYour background is principally in finance. What broughtyoutosupplychainmanagement?
A I was always highly operational, so I’ve had elements of the supply chain working for me along the way. As
a result, it was not a foreign area to me, but certainly it’s a
change of focus. One of the things that most attracted me to
it was that while supply chain at IBM had been integrated
in the early 2000s, it was going through that next phase.
We still saw significant opportunities to manage the whole
process better.
QWhat are the overarching principles that guide your leadership of IBM’s supply chain?
A If you go back a few years, we focused on how we could make internal operations better and more efficient.
But in the last several years—and I’ve helped lead some of
this change—we’ve put the client first in everything we do.
That does put a whole different spin on what your priorities
are and where you make your investments.
The second thing, and I talk about it often, is restlessly
reinventing ourselves. We’ve made that part of how we live
and breathe, and we really strive to find talented people
who are uncomfortable with the status quo and are willing
to drive change. And I think that’s made a huge difference.
The last thing, and I’ve seen how powerful
it can be, is employee engagement. And I
mean engaging everyone all the time. You
want to overcommunicate, making sure the
strategy is understood, making sure you have
simple straightforward messages, making
sure you take time to get your team’s buy-in
to what it is you’re doing.
QWhat do you see as some of the greatest challenges and opportunities for global
supply chains?
A The rate of change in technology is an incredible opportunity but at same time, one of the greatest
threats. As you look at how technology can change the
information flow, access to data, the way that firms communicate with each other, the way information drives
sourcing decisions—that will all change as data proliferates.
I think the rate of change in technology will be the biggest
single decision-maker in who wins and who loses, especially in the global context.
Operating on a global basis, it is becoming more and
more challenging to navigate the confusing, difficult, and
hard-to-interpret regulatory environment, along with the
associated cultural and political challenges. We’ve had to
step up our efforts in this area, whether it be environmental
issues, social issues, or import and export regulations.
The last thing I’d say is how much transparency is changing how supply chains operate. We see a big opportunity in
using new social tools and technology to make transparency in the supply chain a competitive advantage.
QYou also have broad international experience. What advice would you offer U.S.-based managers on successfully building global supply chains?
A I had the opportunity to work in both Europe and Asia. You do have to get out and learn how business is
done in other cultures. You can’t just copy what works in
the U.S. and expect it to work in other countries. In many
places in the world, the U.S. model is just not relevant.
T. Michael Ray
it. As for MIT—that is truly a special place. It is unique in
terms of sharing ideas with intelligent, entrepreneurial peo-
ple who have a passion for blending business, science, and
technology. I spent a year studying how to use optimization
in supply chain planning and execution. I developed a great
understanding of the problems our shippers and carriers
are trying to solve every day.
QThe 2012 surface transport reauthorization law increased to $75,000 from $10,000 the surety bond
amounts that brokers must post to ensure carriers will be
paid for hauling their loads. It also tightens the requirements for being a property broker. Some say it will eliminate the “bad actors” and clean up an industry that has
not always operated ethically. Others say it will force many
brokers out of business and concentrate loads in the hands
of fewer and larger intermediaries. What is your view?
A I’m for higher standards, but I don’t think these efforts will have much of an effect; broker bonds are still inexpensive even at the higher level.
