What is supply chain excellence? And how do companies get to the stage where their supply chain makes a real difference in how they compete in the market arena? These are the kinds of questions addressed head-on in our first feature article, and then approached from varying angles throughout the magazine.

As CSC consultant and author Charles C. Poirier so clearly and colorfully writes in the opening article, supply chain excellence can only come from making a fundamental—and oftentimes wrenching—transition from an internal to an external mindset. Ultimately, organizations need to move from concentrating on intra-enterprise activities (redesigning the corporation) to inter-enterprise initiatives (redesigning the network). Most companies still lack the leadership and vision to make that transition. The good news in all of this, Poirier points out, is that the field is wide open.

The three companies profiled in this issue—Anheuser-Busch, Siemens Telecom Networks, and Whirlpool—all are striving for supply chain excellence. They are working toward this goal in different ways that are reflective of their respective operations and business challenges. Yet despite the differences, there are some notable commonalities to their quest. They all recognized a need to change the way in which they were doing business. They committed the resources necessary to effect those changes. They persevered in the face of obstacles. And, perhaps most importantly, they now are realizing important, tangible benefits as a result of their efforts.

As any of these companies would no doubt tell you, achieving supply chain excellence is not a one-dimensional exercise. Multiple factors come into play. The ability to rely on accurate sales-forecasting systems is one, as the article by professors John T. Mentzer and Carol C. Bienstock points out. How supply chain activities are financed is another critical, though often overlooked, determinant of success. Roland Hartley-Urquhart of the Chase Manhattan Bank makes this clear in his discussion of innovative financing techniques that can reduce the financial risk for all parties in the chain.

The quest for supply chain excellence is not a quixotic one. It's eminently doable and brings substantive advantages across any number of customer service, operational, and financial metrics. Sure, it takes time, personal commitment, and the appropriate resources. It also demands a new way of thinking about internal and external relationships that, frankly, many people will find difficult.

But at the end of the day, the companies that have embarked on the quest for excellence are happy that they're making the journey. In fact, they realize there was really no other choice.