In our last column, we discussed the implications of the Council of Logistics Management's (CLM) name change to the Council of Supply Chain Management Professionals (CSCMP). We noted that going forward logistics professionals would face serious competition for the title of "chief supply chain executive" from other functional areas of the organization. And we promised to speculate, in this column, on the skills required to run the new corporate supply chain.

It might be helpful to first explain the concept of supply chain process, which lies at the heart of the chief supply chain executive's job. Basically, there are two interrelated components of this process—one internal, the other external. The internal domain extends from your inbound dock to your outbound dock. It includes all of the value-creating activities that are traditionally managed by the firm.

Then there's an external domain, which is made up of those entities outside the firm's direct control. These might typically include suppliers, customers, distributors, carriers, and outsourcing providers. To aspire to the job of chief supply chain executive, an individual must be capable of coordinating both the internal and external domains.

So how well are managers from a traditional logistics background prepared to integrate the two domains? Or put another way, how well positioned are they to move into the corner office?

With questions like these, we often turn to the "Annual Career Patterns Study," conducted by The Ohio State University of the CLM membership. As we can see from Exhibit 1 taken from the study, logistics managers' responsibilities are heavily weighted toward logistics, warehousing, and traffic management activities. This finding, coupled with related research we have conducted over the years, confirms that the traditional logistics executives are much more operationally or tactically oriented than they are strategically focused.

Further, these activities not only have been largely operational but also have taken place mainly within the internal domain. Moreover, the external relationships that do exist typically have been limited to carriers, third-party logistics providers, and customers with complaints about a less-than-perfect shipment.

But findings from the "Career Patterns Study" suggest that things are changing here—for the better. Specifically, the study shows that more and more logistics executives are forging strategic relationships with key customers. Forty-five percent of the respondents report having such relationships in place in 2004, and that number is expected to jump to 70 percent by 2006. A similar trend is evident with collaborative initiatives such as CPFR (collaborative planning, forecasting, and replenishment). While only 15 percent of survey respondents had implemented such programs as of 2004, that number is expected to double in two years.

With those insights from the "Career Patterns Study" in mind, what do the tea leaves tell us about the skill sets required of the new chief supply chain executive? What follows are a series of propositions that address this question. Specifically, we propose that to aspire to the supply chain corner office, today's logistics executive must:

• Add both strategy development and implementation to their portfolio of management knowledge and experience.
• Apply the leading-edge information and analytical tools needed to support a supply chain-wide view of the firm's operations.
• Understand and apply concepts of alliance building, collaboration, and negotiation in an environment that emphasizes sharing over confrontation.
• Understand how and where customer value is created in the supply chain—and use this knowledge to synchronize the firm's internal and external domains.
• Know how and where costs are created in the value chain; then use this knowledge to optimize value outcomes for customers and for all supply chain partners.
• Develop integrated metrics that accurately and consistently measure how cost and value is created for all supply chain participants.
• Learn about the global marketplace. As supply chains grow from domestic to global, you need to grow with them.
• Provide thought leadership on supply chain management to the firm and to the firm's external domain.
• Find a way to get out of the office and spend up to 25 percent of your time building relationships in the internal and external supply chain domains.

No single individual could do all of the things suggested by these propositions—at least, not all at once. Part of the challenge is to recruit, motivate, and lead a supply chain organization that can build competencies in each of these areas and deliver on the value outcomes expected—both externally and internally.

I realize that it's much easier to pontificate from the mountaintop about what today's logistics manager needs to do to become tomorrow's chief supply chain executives than it is to begin the formidable task of restructuring a career. Logistics executives have had their card punched in operations and tactical management; being a supply chain executive requires a broader view of the enterprise. It also calls for a measure of persistence, patience, and senior management support. The path to the corner office isn't necessarily an easy one. The good news: It's wide open.