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How can you use change management to improve supply chain operations?

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Change management is the process of planning, implementing, and evaluating changes in an organization to achieve desired outcomes. It can help you improve supply chain operations by aligning them with your strategic goals, enhancing your performance, and increasing your adaptability. In this article, you will learn how to use change management to improve supply chain operations in six steps.

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1 Assess your current state

The first step is to assess your current supply chain operations and identify the gaps, issues, and opportunities for improvement. You can use tools such as SWOT analysis, value stream mapping, or benchmarking to evaluate your strengths, weaknesses, opportunities, and threats. You should also consider the external factors that affect your supply chain, such as customer expectations, market trends, competitors, regulations, and risks.

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Ray Morris

Chief Data Officer at COUNTRY Financial?
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When conducting SWOT (Strengths, Weaknesses, Opportunities, and Threats), it's imperative to do so objectively. Attempting to hide or downplay weaknesses and threats-intentionally or unintentionally- can skew the results and undermine the value of the exercise. If all participants treat the exercise as a genuine and honest effort to improve the company, the results can lead to truly meaningful changes.

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Paul Juhnke

Asset Management at Maintenance Engineering Services
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One common weakness in Supply Chain, often not recognized by Management, is the need to connect every store room spare part to one (or more) physical assets within the facility. Aside from consumables, nothing should be allowed in the warehouse which is not identified to a specific Plant Physical Asset via Engineering BOM and CMMS/EAM equipment hierarchy.

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2 Define your desired state

The second step is to define your desired state of supply chain operations and the objectives and benefits of the change. You should have a clear vision of what you want to achieve, how you will measure your success, and how you will communicate your vision to your stakeholders. You should also align your vision with your organizational strategy and values, and ensure that it is realistic, achievable, and relevant.

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Chéri Duhart, M.A.

Change Leader @ Leidos | ITIL, Certified Organization Development & Change Practitioner
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In my experience, you want to give people something to look forward to, build excitement for the future, and provide enough detail so they understand what behaviors and skills they need in preparation for the future state. Create opportunities for senior leaders to talk about why things are changing, how the organization and individuals will benefit, and where to provide feedback and concerns. Help people see that the change is necessary and will require resilience through learning curves. Provide people resources that will help them thrive in the new environment; help people imagine possibilities for the future. Monitor feedback from all channels and ensure rumors are not clouding the vision. Follow up on feedback immediately!

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3 Develop your change plan

The third step is to develop your change plan, which outlines the actions, resources, timelines, and responsibilities for implementing the change. You should also identify the potential barriers, risks, and mitigation strategies for the change, and how you will monitor and evaluate your progress. Your change plan should be flexible and adaptable to accommodate any changes in the environment or feedback from your stakeholders.

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4 Engage your stakeholders

The fourth step is to engage your stakeholders, who are the people who are affected by or involved in the change. You should communicate your vision, objectives, benefits, and plan to your stakeholders, and solicit their input, feedback, and support. You should also address any concerns, resistance, or objections that they may have, and provide them with the information, training, and resources they need to embrace the change.

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5 Implement your change

The fifth step is to implement your change according to your plan, and manage the transition from the current state to the desired state. You should coordinate and execute the tasks, activities, and deliverables that are required for the change, and ensure that they are completed on time, within budget, and with quality. You should also communicate regularly with your stakeholders, and provide them with updates, guidance, and recognition.

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6 Evaluate your change

The sixth step is to evaluate your change and assess its impact, outcomes, and effectiveness. You should use the metrics and indicators that you defined in your plan to measure your performance, and compare it with your baseline and targets. You should also collect feedback from your stakeholders, and identify the lessons learned, best practices, and areas for improvement. You should also celebrate your achievements, and sustain the change by reinforcing it with policies, procedures, and culture.

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Chéri Duhart, M.A.

Change Leader @ Leidos | ITIL, Certified Organization Development & Change Practitioner
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It’s tough not knowing how you are performing in a new environment! People want and need to know what they got right and how they need to adjust a bit. Acknowledge people who championed the change, acknowledge teams who have remained committed to the change through their efforts, and (executive sponsor) never forget to thank people for coming along and contributing to success - even the smallest of successes. This builds trust and makes people a lot more open to taking more journeys with you in the future.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Shreekant Mandvikar

I help companies automate business processes using Intelligent automation
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Process mining and task mining tools can help map the end-to-end process flow as well as leakages in the process. Some of the top tools in this space are Celonis, Mimica, UiPath process mining etc... Most tools have direct integration with Major ERP( SAP, Oracle, Salesforce) which can take action and improve operations

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How can you use change management to improve supply chain operations?

1

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3

4

5

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1 Assess your current state

2 Define your desired state

3 Develop your change plan

4 Engage your stakeholders

5 Implement your change

6 Evaluate your change

7 Here’s what else to consider

Business Operations

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How can you use change management to improve supply chain operations?

1

2

3

4

5

6

7

1 Assess your current state

2 Define your desired state

3 Develop your change plan

4 Engage your stakeholders

5 Implement your change

6 Evaluate your change

7 Here’s what else to consider

Business Operations

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