The NEW FUTURE of SUPPLY CHAIN
Supply Chain Leadership has always been one of the top value creation drivers for JVA.?As such, our holdings have always explored and implemented innovative approaches to asserting SC leadership in their respective industry space - both for themselves and, more importantly, for our customers.
The Importance of Supply Chain Leadership
Deloitte, one of the industry top thought leaders - where I had the distinct pleasure of being a Senior Manager in the 90’s - pointed to the importance of SC leadership back in April, 2014.?The key point was that companies compete on their supply chain capabilities by “how they manage the activities involved in planning, sourcing, making, and delivering goods determines their costs, quality, and agility (ability to make quick adjustments in strategy, procurement, delivery, etc.) in response to customer and market needs.”?Supply chain leadership - Distinctive approaches to innovation, collaboration, and talent alignment |Deloitte
In short, good leadership recognizes and makes strategy adjustments to shifts in customers’ needs, business operations, technologies, ecosystems, workforce, and other business environment factors.
The Future Is Not What It Used to Be
The last couple of years it has become abundantly clear to all of us in the manufacturing space that increasing uncertainty is now the status quo. As such, we must re-engineer our supply chains - not only for agility - but also for resilience (adaptive capability to prepare for unexpected events and disruptions and recover at the desired control level over structure and function).?In short, preparing our supply chains to thrive under risk and uncertainty.?
A 2022 survey by McKinsey shows that disruption has reshaped almost every supply chain. 97% of the respondents said they have applied some combination of inventory increases, dual sourcing, and regionalization to boost resilience.?Supply chain disruption and resilience | McKinsey
What Kind of Future Do We Need to Create?
From our JVA perspective, this question requires strategic thinking, planning, and rapid execution that best address the key objective: How to best increase a company’s competitive advantage (and that of its key customers)?
The first step is a deep assessment of the shifts across customers, business operations, technologies, ecosystems, organizational development, and workforce capabilities through recruiting, developing, and retaining best talent.?
The second step is the development of strategic contingencies (Murphy’s law).
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The third step is repeating the first step without losing sight of what is beyond the horizon.?
Looking beyond the horizon - Preparing today’s supply chains to thrive in uncertainty. The future of supply chain post-pandemic | Deloitte Insights
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Exponential Transformation, Business Dev., & Operational Strategies | Supply Chain, Manufacturing, & Quality Management | Technology, Digital and Generative AI | Education, Job Creation, Economic Dev. for Communities
1 年Yes, you correct that businesses need to rethink the strategics and assess how they conduct business. The future of supply chains has changed with the pandemic. Companies have to rethink chasing the low cost parts manufacturing solution and consider the value of intangibles. As 3D printing continues to develop, it has changed manufacturing. We no longer need tooling to mass produce parts. 3D printing will continue to impact how we source parts. Businesses will utilize licensing to print 3D parts on demand. Create a sourcing model where businesses can print at multiple locations and on demand instead of ordering, shipping, distributing and managing the inventory of parts. When businesses rethink these strategies it will help all of us achieve global sustainability goals.
D365 F&O Supply Chain consultant and implementation project lead at TZL Consulting LLC
1 年I sense that many companies will struggle to break the overwhelming focus on cost.