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The Triple-A Supply
Chain
by Hau L. Lee

Included with this full-text Harvard Business Review article:
1 Article Summar y
The Idea in Brief—the core idea
The Idea in Practice—putting the idea to work
2 The Triple-A Supply Chain
12 Further Reading
A list of related materials, with annotations to guide further
exploration of the article’s ideas and applicationsProduct 8096

HBR Spotlight

The 21st Century
Supply Chain

The Articles

COPYRIGHT © 2004 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.

Managing the modern supply chain is
a job that involves specialists in manufacturing, purchasing, and distribution,
of course. But today it is also vital to
the work of chief financial officers, chief
information officers,operations and
customer service executives, and certainly chief executives. Changes in supply chain management have been truly
revolutionary, and the pace of progress
shows no sign of moderating. In our
increasingly interconnected and interdependent global economy, the process of delivering supplies and finished
goods (and information and other
business services) from one place to
anotheris accomplished by means of
mind-boggling technological innovations, clever new applications of old
ideas, seemingly magical mathematics,
powerful software, and old-fashioned
concrete, steel, and muscle.

The Triple-A Supply Chain

An end-to-end, top-to-bottom transformation of the twenty-first-century
supply chain is shaping the agenda for
senior managers now and will continue
to do sofor years to come. With this
special series of articles, Harvard Business
Review examines how corporations’
strategies and structures are changing
and how those changes are manifest in
their supply chains.

by Kasra Ferdows, Michael A. Lewis, and Jose A.D. Machuca
November 2004
Spanish clothier Zara turns the rules of supply chain management on their head. The result?
A superresponsivenetwork and profit margins that are the envy of the industry.

by Hau L. Lee
October 2004
The best supply chains aren’t just fast and cost-effective. They are also agile and adaptable,
and they ensure that all their companies’ interests stay aligned.
Reprint R0410F; OnPoint 8096

Leading a Supply Chain Turnaround
by Reuben E. Slone
October 2004
Five years ago, salespeople at Whirlpoolsaid the company’s supply chain staff were “sales
disablers.” Now, Whirlpool excels at getting the right product to the right place at the right
time—while keeping inventory low. What made the difference?
Reprint R0410G

Aligning Incentives in Supply Chains
by V.G. Narayanan and Ananth Raman
November 2004
A supply chain stays tight only if every company in the chain has reasons to pull inthe
same direction.
Reprint R0411F; OnPoint 8363

Rapid-Fire Fulfillment

Reprint R0411G

Building Deep Supplier Relationships
by Jeffrey K. Liker and Thomas Y. Choi
December 2004
Two Japanese automakers have had stunning success building relationships with North
American suppliers—often the same supplier companies that have had contentious dealings
with Detroit’s Big Three. What areToyota and Honda doing right that their American
counterparts are missing?
Reprint R0412G

We’re in This Together
by Douglas M. Lambert and A. Michael Knemeyer
December 2004
If your latest supply chain partnership failed to live up to expectations, as so many do, it’s
probably because you never stated your expectations in the first place.
Reprint R0412H

The Triple-A Supply Chain

TheIdea in Brief

The Idea in Practice

The holy grails of supply chain management are high speed and low cost—or are
they? Though necessary, they aren’t sufficient to give companies a sustainable competitive advantage over rivals. Consider
these disturbing statistics: Though U.S. supply chains became significantly faster and
cheaper between 1980 and 2000, product
markdowns owing to excess...