How To Think About Supply Chain In 2024

Summary

In this insightful conversation from the Visibility Conference, Sarah Barnes Humphrey discusses with Tom Goric, VP of Industry Strategy at For Kites, and Dustin Burke, Senior Partner at Boston Consulting Group, the challenges and opportunities in supply chain management. They delve into cost pressures, the importance of agility and resilience, and the need for a nuanced approach to balancing inventory with lead times. The discussion highlights the significance of talent in operations and the integration of digital technologies for effective leadership. The speakers emphasize the shift from viewing supply chains as cost centers to leveraging them as competitive advantages, stressing the importance of real-time data and cross-functional collaboration for a connected and proactive approach to supply chain management.

Takeaways

• 📈 Cost pressures are returning quickly in sectors such as consumer goods, industrial goods, and healthcare, necessitating a balance between addressing these pressures and maintaining supply chain agility and resilience.
• 🔄 Traditional solutions like balancing inventory with lead times or adjusting production lines may not be sufficient; more nuanced strategies are required that come with different capabilities.
• 💼 There is a scarcity of talent in supply chain operations, particularly those who can lead in manufacturing sites, distribution centers, and manage frontline labor with digital technology understanding.
• 🤝 The importance of connectedness in supply chain management was emphasized, highlighting the need to break down data silos and align teams towards common goals rather than competing KPIs.
• 🚚 Digital transformation in manufacturing involves not just improving customer service but also ensuring inbound raw materials and outbound logistics are synchronized for efficiency.
• 📊 The introduction of real-time data and technology helps to quickly resolve disputes and focus on growth and cost optimization by analyzing facts and data across functions.
• 💡 COVID-19 highlighted supply chain resilience and agility as growth drivers, with companies that adapted seeing opportunities for growth they couldn't realize before.
• 🔗 The conference underscored the importance of connectivity not just within the supply chain but also with customer service, sales, and end customers for a more integrated approach.
• 🛠️ Manufacturers are encouraged to focus on digital technologies and automation, and to connect these advancements across the entire supply chain for instantaneous response to issues.
• 📚 Supply chain professionals are advised to move beyond resolving problems via emails and spreadsheets, and instead leverage digital supply chain investments for real-time data and reporting.
• 🚀 For digital transformation to be effective, it's crucial to immerse fully in the technology, ensuring that talent is trained and silos are broken down for a unified team approach.