Supply chain transformation: Technology is the easy part

Most supply chains are facing a similar challenge: functions are siloed—by processes, technology, and data--and that makes it hard to make good decisions quickly.

We’ve all learned in the last few years how fast our supply chains can be affected by external forces. It’s become painfully obvious that supply chains need to modernize. We need more automation, not spreadsheets filled with data that is weeks old. And the siloes have to go.

Too often, #supplychain leaders looking to transform their operations start with technology. They look for the cool tools, then find a place to put them. But a #transformation needs to begin with the company strategy.

Without a clear understanding of the business, its competition, its current business model and future vision, any technology changes can move a supply chain organization in the wrong direction. Those cool-tool missteps can make a transformation more difficult and costly.

I lead the transformation team in the Microsoft Cloud Supply Chain. We focus on the outcomes, not the technology; what we want to get out of the tools we’re implementing and the new processes we design. We are looking upstream at the data inputs and downstream at the data needs to make sure they align, and we want to understand the ripple effects of any changes we make.

Transforming a complex, global supply chain operation in a growing business is a bit like doing open-heart surgery with no painkillers while the patient is walking around. Every change and improvement we make can inadvertently break something somewhere else.

I think most supply chain leaders have felt that pain.

Where it makes sense, we’re adopting best-in-class technologies. In areas where we can truly differentiate or where our needs don’t align to off-the-shelf tools, we start by designing processes and then choose the technology.

Technology truly is the easy part -- and once we choose a technology, we try not to fight against the processes it enables unless our model requires a modification.

Even the best processes and tools imaginable won’t get us far if our team does not embrace them. One of our biggest focus areas is communicating with the entire supply chain team about how we are changing the processes, tools, and data model used by our organization to achieve our business goals.

Communication in a huge project like this needs to happen early and often, reinforcing the strategic direction and why it’s important. Even people who passionately dislike their current systems and business processes will resist change – unless they clearly understand why the change is beneficial to the business and to them.

We’ve established change leads in each organization within our supply chain, and we work with them and their organization to understand current processes, the business impacts of change on the team and on employees, and to help them understand the new processes. Their feedback along the way is invaluable.

My transformation team holds lunch-and-learns every month to talk about our strategy, the progress we’re making, and what that means for the rest of the team. Hundreds of our team members attend these sessions each month, and we always have a lively Q&A session after the presentation.

But the foundation of any successful supply chain transformation is the alignment and commitment of the business’ leadership team. Without that clarity, meaningful progress won’t be made. We are fortunate that our leaders are not only aligned, but they reiterate our strategy to the team at every opportunity.

We all want to feel that we’re a part of positive change, and that our work provides value. For supply chains to deliver the value expected by their company and its customers, they need to eliminate siloed processes, tools, and mindsets.

Find out more about the innovations we’re implementing in the Microsoft Cloud Supply Chain. Innovation | Azure global infrastructure experience (microsoft.com)