Never before has supply chain been at the forefront of the world’s minds than it is in this COVID-19 crisis today. Supply chain workers across the globe are still showing up every day in factories, warehouses, tractor-trailers, retail stores, and ports.

Having spent the better part of my 25-year career designing and implement supply chain improvement projects, I have had the opportunity to see firsthand the jobs that these people do every day. It can be repetitive, demanding, and it often goes unnoticed. Unless, of course, there is something wrong—then it’s supply chain’s fault. Or, heaven forbid, there is a truck trying to get up an incline that has the nerve to slow you down on the way to wherever you are going. Maybe it’s your favorite item that isn’t on the shelf exactly when you need it or that online request doesn’t deliver the very next day.

We are all spoiled by the excellence and hard work that America’s supply chain workers are doing.

The crisis we are facing today resulted in an unplanned shift in the supply chain. Planners could not have forecasted the spike in daily staples (e.g., toilet paper, baking supplies, hand sanitizer) that we are all just hoping to find when we get to the grocery store. Nonetheless, these heroes are all still out there manufacturing, moving, and stocking product. They are taking much more risk than I am today working from home.

When this is all over, we, as supply chain executives, will work to learn from the creative solutions that were created during this crisis. Our goal will be to build a better and more reliable supply chain for the companies that we support. This better supply chain will need to include solutions that make the day-to-day jobs of our supply chain partners on the front lines better as well.

Thank you all for what you do to keep America running. I don’t think that supply chain will ever be looked at in the same way again.

Supply chain is a massive industry that’s constantly evolving. The majority of our clients that buy, sell, or move products are affected by these changes. Digital transformation benefits supply chain by improving efficiencies and increasing visibility of processes. Consumer expectations and legislation (to some extent) are pushing requirements onto companies, which creates a significant need in supply chain for digitally tracking and providing visibility at every stage.

The ultimate driver for supply chain’s future is customers’ expectations of the information they can get out of it. That’s never-ending and something all businesses can take to heart.

2 Strategies for Success:

1. Pay Attention to Consumer Demands

Amazon.com has grown into the empire it is today largely because of its effective supply chain. Customers would stop buying from Amazon if they didn’t trust that their items would arrive in two days. The “Amazon effect” has shaped consumers’ expectations for online shopping.

Pivoting to B2B, you could reasonably ask, “How will the Amazon effect shape B2B supply chain expectations?” This is where the expectation of full lifecycle visibility comes into play. While technologies like blockchain and the Internet of Things (IoT) are important components of a supply chain solution, what’s most important is gaining that visibility into your inventory at every stage.

2. Start with a Visionary Mindset

Consider what you want your company to look like in the future, and strategically figure out how to get there. Operations is a huge component of supply chain. It runs the gamut from factory and warehouse locations to the kind of fleet you need to transport materials and finished products.
Consider these questions: What are your limiting capabilities within the supply chain that will prevent you from achieving success? What threats keep you from operating your business the way you are today? For instance, grocery stores need to consider the rising trend in home delivery. How will this change impact how the store will need to operate in two years?

Success Story

Focusing on Optimization and Continuous Improvement

One of the largest producers of natural gas liquids and one of the largest natural gas processing companies in the United States had a dispersed distribution network with local warehouses being managed manually, along with low inventory turns. It needed support in designing a program.

We facilitated a scalable materials management capability that aligned to enterprise initiatives focused on optimization and continuous improvement.

We conducted cross-functional workshops to develop a conceptual design and future-state processes. This resulted in more than $5 million in annual process improvement savings.

Want More Digital Transformation Advice?

The digital transformation strategies I share in this blog post draw from Perficient’s e-book, “How to Make Digital Transformation Gains in 2019.” In it, my fellow Perficient Chief Strategists and I share real-world examples from conversations with today’s leading brands at various stages of digital transformation. The 10-chapter e-book features business insights, actions to take now, and client success stories. Download it here or via the form below.

Read all of the blog posts in this series here.

About the Author

Bob Vanek has more than 20 years of experience in delivering supply chain solutions across a variety of industries. Bob led the supply chain management integration for a major telecom company’s acquisition of a wireless service provider. Additionally, he has worked with the core leaders of Perficient’s supply chain practice for 20 years across four companies.

Connect with Bob via LinkedIn.

My last post outlines the opportunities companies can take to implement sustainability protocols. This final blog in the series continues to identify sustainability measures companies can take.

When building a roadmap for the supply chain organization, leadership can look at sustainability in two ways: by considering the impact of each operational component in the supply chain separately, or holistically viewing supply chain sustainability as a standalone component. Either approach can yield the desired results, depending on the participation of leadership.

The following sections examine the seven most beneficial areas to review in order to identify processes and standards where opportunities exist to make sustainably a priority:

1. Planning/S&OP
2. Process optimization
3. Procurement
4. Product lifecycle management
5. Reverse logistics
6. Consumer communications
7. Facility operating costs

This blog highlights consumer communications and facility operating costs.

Consumer Communications

Educating customers on how to recycle a product’s packaging or the product itself can help effectively close out the product’s lifecycle. The recycling industry is changing, and people expect higher-quality products. Often, if products are not recycled the right way, regardless of one’s good intentions, these items can still end up in landfills.

Aligning consumer expectations with the company’s commitment to sustainability will likely require compromises. The packaging may need to change, which may impact how the product is displayed in the store. How does that change the customer experience? Why was the change made? Always let customers know what’s being done and why it is the right thing.

Facility Operating Costs

 When thinking about environmental cost, it is easy to only consider the impacts on the company’s numbers. However, there can be a substantial upside to sustainable supply chain and operations. Focusing on improving efficiency around variable and fixed-cost resources can reduce operating costs and improve profitability. Reducing water and energy consumption, minimizing waste, and optimizing processes can all also reduce cost. The marketplace has begun to notice the financial benefits of environmentally motivated efficiency improvements and has begun to value them more.

Arabesque and University of Oxford reviewed academic literature on sustainability and corporate performance, and found that in the 200 studies analyzed, 80% of the companies surveyed said that stock price performance is positively correlated with good sustainability practices. The study also reported:

• Reducing energy costs through efficient vehicles, lights, etc., leads to reduced operating costs, as well a cleaner environment
• Improved packaging, product design, and processes can reduce the costs of materials
• Some laws and regulations can (e.g., carbon tax credits, incentives) can encourage sustainable practices
• Public relations and consumer sentiment can improve from sustainability
• Sustainability certifications (e.g., LEED) can result in substantial tax credits

Whirlpool implemented a program that focused on reducing facility operating costs. The company announced the installation of three wind turbines to reduce the power demand at its plant in Greenville, Ohio, with the expectation of replacing up to 70% of its energy with renewable energy. These turbines are contributing to the company’s goal of reducing US greenhouse gas emissions by 30%.

There are significant opportunities and benefits, both financially and socially, to make sustainability in the supply chain part of the organization’s strategic roadmap. New generations are more aware of the impact that companies can have on the world in which they live. A company’s position as a sustainability leader may influence customers’ buying trends, and subsequently, the bottom line.

To learn more about developing and implementing a sustainability program into your business, you can download our guide here. Or, you can download the guide below.

Previously, I outlined the opportunities companies can take to implement sustainability protocols. This submission continues to identify sustainability measures companies can take.

When building a roadmap for the supply chain organization, leadership can look at sustainability in two ways: by considering the impact of each operational component in the supply chain separately, or holistically viewing supply chain sustainability as a standalone component. Either approach can yield the desired results, depending on the participation of leadership.

The following sections examine the seven most beneficial areas to review in order to identify processes and standards where opportunities exist to make sustainably a priority:

1. Planning/S&OP
2. Process optimization
3. Procurement
4. Product lifecycle management
5. Reverse logistics
6. Consumer communications
7. Facility operating costs

This blog highlights procurement, product lifecycle management, and reverse logistics.

Procurement

Procurement plays a vital role in overall supply chain sustainability. With requirements and plans in hand, procurement can begin the systematic process of sourcing supplies and labor for the execution of those initiatives.

Organizational Mission

Does the organization as a whole have a mission or vision that relates to sustainability? If the answer is no, then it will be very difficult for procurement to have an impact as the sourcing methods must align with the vision of the enterprise.

Category Management

Category managers are responsible for establishing vendor relationships and contracts in their area of focus. They must assess suppliers based on these metrics before adding them to their selected list of approved suppliers.

Metrics, such as these, must then be applied when forming vendor alliances:

• Does the supplier have a sustainability plan?
• Does the organization look beyond financial metrics to track fuel
• consumption, amount of plastics incorporated into products, and net emissions?

Sourcing

Strategic sourcing managers are responsible for awarding contracts to suppliers based on the metrics set for the organization. Typical procurement organizations focus on metrics, such as total cost of ownership. Contracts are then awarded to suppliers that can help achieve financial targets and sustainability targets. Vendors should be ranked based on the established metrics that include sustainability.

Purchase Order Management

Buyers make day-to-day operations decisions when sourcing materials that fall outside the planning process. It is critical that buyers make these decisions based on the sustainability rankings set by the category and strategic sourcing managers.

Procurement Reporting

Reporting against metrics is critical to every procurement organization. If an organization intends to focus on sustainability, it must include sustainability metrics in its reporting. Organizations must also hold their employees accountable in the continuous improvement of sustainability metrics, in addition to financial metrics.

Company executives must decide if they are willing to pay more for inputs in the supply chain for higher sustainability scores and determine the right balance between financial success and sustainable success.

The key to creating a sustainable procurement organization is finding the intersection of financial success and sustainable success. Once that balance is established, metrics must be put in place, and category managers, strategic sourcing managers, and buyers must be held accountable for meeting those metric targets.

Vail Resorts is an example of a company that developed an enterprise sustainability plan that focuses on procurement. In 2018, Vail Resorts launched an aggressive plan to contribute zero net emissions and zero waste to landfills. For the plan to work, metrics had to be established for suppliers that aligned with the plan to generate zero emissions and zero waste to landfills by 2030. World-class sustainable organizations focus on metrics that help them achieve their sustainability targets, such as the amount of net waste built into a product.

Product Lifecycle Management

 Effective product lifecycle management (PLM) can play a vital role in the overall success of sustainability in the supply chain. Understanding when product lines will be introduced can provide better lead time for engineers and planners to incorporate sustainability goals into the product introduction. In turn, knowledge of the end of a product’s lifecycle can reduce the potential for excess raw materials and finished goods.

There are three key components within a PLM process where opportunities can be identified:

Design

• Sustainable materials: Recycled plastics, lead-free paint, etc.
• Reduced materials: Less material used, lighter weight (shipping), more efficient (MPG of a car)
• Sustainable manufacturing: Less water used, less waste material/scraps

Development

• Five-level framework (system, success, strategic, actions, tools)
• Natural step framework (Framework for Strategic Sustainable Development – FFSD)

End–of-Life Planning

• Effectively ramp down procurement and manufacturing/production
• Responsibility on the company to enable the successful reclamation or disposition of project materials that have been discontinued

The figure below demonstrates how to consider all phases of the product lifecycle for sustainability for mobile devices.

Reverse Logistics

Over the past couple of decades, supply chains have changed dramatically through systems, processes, and efficiency gains. In recent years, however, there has been an even greater push for businesses to recycle waste and reuse what they can to conserve valuable resources, as well as potentially lower future operating costs.

Companies compare the disposal of products versus the cost of recycling and reusing products. Sometimes, the cost of recycling outweighs the benefits it produces. Therefore, companies must be proactive in understanding the end-to-end supply chains to maximize the benefits of products being used with the intention to produce goods that can be recycled and reused after initial use and at a minimal cost.

As a growing consumer base becomes more educated about recycling, a common question asked is, “Where does my returned product go? How does the product get reused or disposed?” Given that the consumer drives the demand, companies with a consumer-centric focus should design, build, and repurpose their supply chains with an effort to reduce waste and costs through maximizing recycling capabilities where possible.

It is difficult to say how much accountability companies may have for the disposition of their products in the future. Hypothetically, customers could recycle electronic waste based on a serial number tracked on a blockchain. That may sound farfetched, but a successful reverse logistics program requires visibility into where an item came from, and through directions, how it can be returned or discarded.

Technology can facilitate this process by integrating systems with tools, such as unique identifiers (e.g., RFID, asset tags) and partner integration (e.g., APIs, blockchain). These will be critical foundational components as greater scrutiny on what happens to a product as it reaches the end of its life.

An example of a company that implemented reverse logistics is a large satellite provider. The company established a receiver reverse and reuse cycle, where it recycles cables, sealant waste, reflectors, set-top boxes, remotes, packaging, and about three tons of alkaline batteries per week, among other materials. This process not only avoids significant impact on landfills, but the ability to recover and reuse receivers helps the company avoid millions in annual capital costs that would be required to manufacture new receivers.

When a used product gets shipped back to a manufacturer, there is a specific intake process. This process starts with receiving, disassembling parts, and separating those parts by component in an assembly line fashion. Some products might be at the end of their life and sent for scrap, while others will be sent to “clean and screen,” commonly referred to as refurbishment.

Screen and clean is where the product is cleaned thoroughly, validated for operability, and systematically tracked by the old serial number. It is then assigned a new serial number that can be traced to future customer data. Once the product has been cleaned and screened, it is re-packed and palletized with similar products. It is then sent out when a sales order is created.

To learn more about developing and implementing a sustainability program into your business, you can download our guide here. Or, you can download the guide below.

Previously, I highlighted the benefits of sustainability in a business’ supply chain. This installment outlines the opportunities companies can take to implement sustainability protocols.

When building a roadmap for the supply chain organization, leadership can look at sustainability in two ways: by considering the impact of each operational component in the supply chain separately, or holistically viewing supply chain sustainability as a standalone component. Either approach can yield the desired results, depending on the participation of leadership.

The following blog installments examine the seven most beneficial areas to review in order to identify processes and standards where opportunities exist to make sustainability a priority:

1. Planning/S&OP
2. Process optimization
3. Procurement
4. Product lifecycle management
5. Reverse logistics
6. Consumer communications
7. Facility operating costs

This blog examines planning/S&OP and process optimization.

Planning/S&OP

With accurate planning, the environmental impact of the supply chain can be greatly minimized. Basic economics dictate balancing supply and demand, so it is critical to examine the costs associated with excess supply. Companies should examine the carrying cost of idle product in warehouses, extra packaging, the cost of product movement, and increased recycling and disposition costs when the surplus becomes obsolete. Accurate planning makes financial sense for any company, and reducing environmental costs of procurement, storage, and disposition go hand in hand with it.

A major clothing manufacturer felt the pain of inaccurate planning when it incinerated an estimated $37 million in clothing and cosmetics to protect its “brand value.” While the environmental and social impact of destroying its excess inventory was serious, in addition to the impact to the company’s bottom line.

Process Optimization

Optimizing processes is core to what most supply chain organizations strive to achieve. How can one continue to procure, produce, and deliver at the lowest cost possible? Supply chain groups have adopted Lean and Six Sigma practices to identify and implement these improvements.

Process optimization programs frequently focus on cost reduction. Looking at the process from a sustainability perspective is a new angle to search for improvement opportunities, or at least a way of implementing the required changes at the lowest cost possible.

One example relates to packaging. Nearly every consumer household has experienced excess product packaging. Cardboard, paper, clam shells, and other packaging materials make up a large portion of every home’s trash and account for one-third of all trash. Globally, businesses are working to reduce these materials while maintaining product integrity and preventing opportunities to shrink. In a recent “Packaging Digest” survey, 86% of brand owners cited having “either goals or statements of support that address one or more concepts in sustainable packaging.”

To learn more about developing and implementing a sustainability program into your business, you can download our guide here. Or, you can download the guide below.

In my last post, I analyzed the benefits of building a case for sustainability. In this post, I highlight the benefits of sustainability in a business.

Leftover paint is an issue almost all people have dealt with at one time or another. The EPA estimates that every homeowner in the US has 3-4 gallons of leftover paint in the house. Fortunately, there are many recycling applications for unused paint such as:

• Re-mixing, coloring, and re-selling
• Used as an additive in cement manufacturing

Studies show that recycling one gallon of paint has the following effects:

• Saves 13 gallons of water
• Prevents using more 1 quart of oil
• Eliminates 250,000 gallons of water pollution
• Reduces CO2 emissions by nearly 14 pounds
• Sets aside enough energy to power the average home for 3 hours

Armed with this information, US paint manufacturers came together to form a 501(c)(3) organization named PaintCare. This organization works to define paint stewardship programs and works with the legislature to pass paint stewardship laws. It also works directly with paint retailers and provides locations for consumers to bring unused paint. Subsequent legislation in eight states mandates that PaintCare programs be established and provide for the collection, transportation, and processing of unused paint.

Reduction of carbon emissions seems to be one topic on which almost everyone can agree.

Xcel Energy, based in Minneapolis, provides power to eight states in the western half of the US. Xcel plans to be producing 100% carbon-free electricity by 2050. To achieve this goal, it will take a significant investment in new infrastructure and technology.

Why is Xcel taking the lead? While it’s hard to cite the exact motivators, it’s clear the company evaluated the operating costs of old coal-fired plants, public buying trends, potential legislative directions, and the impact of emissions. Whatever the motivator, Xcel is changing its business model and defining a roadmap with “green” initiatives.

To learn more about developing and implementing a sustainability program into your business, you can download our guide here. Or, you can download the guide below.

Previously, I discussed the importance of implementing a sustainability program into your business. Today, I analyze the benefits of building a case for sustainability.

Supply chain organizations must take a comprehensive look at their end-to-end operations to determine where both financial and socially responsible changes can benefit both the environment and the company. These opportunities should then be incorporated into the overall corporate strategic roadmap.

There are many links in the supply chain that companies can evaluate to identify opportunities for sustainability programs.

Looking at these links through a lens of environmental impact may provide a new opportunity to drive innovation while reducing the company’s environmental footprint. Items to evaluate are recurring costs like warehouse power, HVAC, and fleet fuel. Other costs to evaluate include obsolescence, waste disposal (e.g., electronic waste, manufacturing byproduct, tires), and packaging materials.

Categorize the magnitude of the impact on the environment considering social perception, waste/pollution impact and regulatory risk of each. This evaluation generates a view of which areas are most important to both customers and companies. The sum of the impact assessment and costs gives an area to target in the supply chain.

Analyzing these processes and standards will generate a list of target opportunities for sustainability program improvement.

Evaluate these opportunities in terms of both financial and environmental costs to determine the best green initiative candidates to be integrated into the overall supply chain strategic roadmap.

For example, are there long-term investments (e.g., renewable energy) that can reduce reliance on the grid while reducing long-term energy costs? What short-term projects can be implemented to change current operations (e.g., revised reverse logistics processes, new transportation routing software)? Incorporating this green initiative component in your supply chain roadmap will ensure your organization is considering these costs as you look to the future.

To learn more about developing and implementing sustainability programs into your business, you can download our guide here. Or, you can download the guide below.

According to Investopedia, “Sustainability focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainability is comprised of three pillars: economic, environmental and social – also known informally as profits, planet, and people.”

Interestingly enough, the business of sustainability can be viewed as a barometer of success. Analysis by Corporate Knights and Thomson Reuters Datastream found that companies that have more ethical operations are more profitable and valued than their competitors. Investors are increasingly evaluating a company’s sustainable business practices before they buy shares.

While the impact of sustainability can increase profits, today’s consumers want to do business with companies that are not simply profit-driven.

They want relationships with socially conscious organizations. Therefore, companies should remain steadfast in developing and enhancing a sustainability program that advances their strategic values and priorities.

Many industry leaders have embarked on sustainability initiatives in an effort to improve their businesses. For example, Wal-Mart’s corporate responsibility efforts, which are aimed at building customer trust and strengthening societal systems, have added a lot of business value. The iconic consumer goods powerhouse is on track to reduce 1 billion metric tons of emissions from global supply chains by 2030.2

As supply chain organizations look to improve their operating efficiencies over the next three to five years, leaders should consider the impact of social, economic, and regulatory forces.

Organizations must frequently evaluate opportunities to save money, especially as it pertains to the supply chain. Changes seen as “green” supply chain initiatives can provide previously untapped opportunities to eliminate cost and potentially gain market share.

Ultimately, companies must determine if sustainability programs will be a priority or if they will merely remain compliant with the laws that are set in place. Either way, current trends indicate that social responsibility and legislative changes will force companies to change how they operate. Organizations that take a proactive approach to sustainability will achieve better results.

To learn more about developing and implementing a sustainability program into your business, you can download our guide here. Or, you can download the guide below.

Current innovations in the supply chain industry can play a major role in improving any company’s existing supply chain capabilities. While some companies may be ready for cutting-edge technologies such as blockchain or data capabilities presented by advanced analytics, others may need to make sure the supply chain components they’ve already worked hard to put in place are meeting expectations and can support adjustments.

Preparing your organization for what’s next can be accomplished by keeping a focus on the foundational supply chain aspects that have been identified in this guide. A supply chain maturity assessment will help you determine where your organization is currently and where you should be going. This approach defines a strategic roadmap for your company to achieve the right fit maturity level at a pace that meets both business needs and identifies your ability to change.

Differentiate Your Supply Chain

Rethinking how the supply chain organization interacts with the company’s core functions can be a differentiator that gives you a competitive advantage. There are many companies in the market looking for opportunities to run some or all of your supply chain functions. They look at your company’s core functions as potential customers. And you should do the same.

We recently published a guide that explores six of the leading trends in supply chain, as well as the importance of having a strong foundation to support them. You can download it by clicking here or filling out the form below.

Our experience has shown that many companies want to look to the future, but are missing the key foundational components necessary to be successful.

Common reasons for missing these foundational components include:

• Lack of a transformational roadmap for the supply chain organization that is aligned with business objectives and vetted with business cases to ensure the company remains on its strategic path
• Rapid growth often triggers a “we’ll capture that data later” mindset, especially with organizations that are in a race to build out their infrastructure to meet demand
• Growth through M&A without tying together the operational systems results in extensive manual processes, spreadsheets, and gaps
• Not getting the most out of yor current systems due to poor change management or misaligned incentives
• A perception that it is too expensive to catch up, which results in shortcuts that, in the short term, save time and money
• Exclusive focus on core competencies (i.e., manufacturing, gathering/ processing, customer service) at the expense of supply chain, limiting innovation and maturity growth
• Traditional supply chain and procurement leaders can get so focused on volume and the workload required to operate the business that they become complacent or don’t know how to make the changes required to drive efficiency
• Not looking outside the company to take advantage of industry or cross-industry thought leadership on how to accurately structure a procurement and supply chain organization for cost savings, planning, and growth

We recently published a guide that explores six of the leading trends in supply chain, as well as the importance of having a strong foundation to support them. You can download it by clicking here or filling out the form below.

To successfully address supply chain trends, it is critical that the foundational aspects of your existing supply chain are operating effectively. We recommend evaluating the maturity of the following key supply chain components before attempting to use the latest technologies.

SUPPLY CHAIN DATA GOVERNANCE (BLOCKCHAIN, ADVANCED ANALYTICS)

• Data integrity is the key to supporting transformational technologies such as blockchain and advanced analytics. There must be a single source of the truth for each data point. Through governance, data should be cleansed, and control processes should be continuously followed to maintain data integrity.
• Establish a clear and implementable data governance model that guides how your supplier, parts, production, and customer data is captured, maintained, and secured in your systems.
• Coordinate supply chain data with the overall enterprise governance model to ensure that new partners or products follow company standards.
• Accessible dashboards and shared reporting tools provide insight into integrated systems, data warehouses, inventory, etc. Materials should be in the right place at the right time

VISIBILITY AND TRACKING (IoT, BLOCKCHAIN)

• Have a strong understanding of how product moves through the supply chain and visibility to where it ends up is necessary before trying to integrate new technologies.
• Develop a plan for the data that will be captured by new technologies.
• Maintain solutions that work to meet your compliance goals. This is made easier when time is spent in the field with the personnel who enter the data to understand how solutions impact their jobs. (e.g., mobility, scanning, RFID).
• Take advantage of what your partners are generating. There are many mature partner data sources that companies frequently are not integrating into their data sets. (i.e., advanced ship notices and proof of delivery).
• Listen to the people entering your data. A review of processes and procedures can frequently identify gaps in data capture that can be easily fixed.

STANDARDS AND BUSINESS RULES (PERFECT ORDER)

• Evaluate your purchase-to-pay process to enable a repeatable and reliable fulfillment model.
• Business need to run based on the policies and standards that are established by leadership. These standards need to cascade through your business rules that drive systems configurations, process flows, and workflows.
• Everyone must understand the end-to-end process – not just their individual steps in the process. Shortcuts in one step of the process often cause increased workload on downstream steps.

EMPOWER YOUR EXPERTS (S&OP, ADVANCED ANALYTICS)

• Implement repeatable and standardized processes and tools across the planning group to allow your experts to spend their time utilizing their skills instead of executing the process.
• Make clean data available. We often hear that planning organizations spend over half of their planning cycle just getting data clean and consolidated to get to a forecast. This leaves no time to think it through to provide the best plan for the company.
• Eliminate silos across departments to ensure that planners have the information they need to be successful. This is the foundation of S&OP, but before you can effectively run, you must “talk.” Improve communication channels, ensuring planner access to key organizations is in the S&OP process.

PROCESS COMPLIANCE (ARTIFICIAL INTELLIGENCE, ROBOTICS)

• Adding technology to automate or facilitate a process could prove to be costly if there is not a full understanding of the current state. Spend time on whiteboards envisioning these processes before technology begins to play an even bigger role.
• Determine where your gaps exist and the opportunities for improvement.
• Engage your team. Solicit opinions, and listen to their challenges. While technology can facilitate a process, a quick process change could provide a significant portion of the efficiency gains targeted by automation.

METRICS (ADVANCED ANALYTICS)

• Everyone wants to use advanced analytics, but frequently it’s without agreed-upon metrics to ensure you’re measuring the right thing.
• Challenge the standard metrics. Are old industry standards right for your company today?
• Make sure you have the right data to support your metrics.
• Once you define your metrics, set a baseline and then continually manage to the metrics to drive behavior.

We recently published a guide that explores these six leading trends in supply chain, as well as the importance of having a strong foundation to support them. You can download it by clicking here or filling out the form below.

While it’s impossible to know for certain what the future holds, trends can be a reliable predictor of what’s on the horizon. Our extensive work with supply chain has revealed several trends that we believe will be impacting supply chain in the near future.

These include:

1. Blockchain: Create immutable end-to-end data visibility into all aspects of a product’s lifecycle.
2. Internet of Things (IoT): Take advantage of operations data from deployed assets to improve analytics, maintenance, and efficiency.
3. Sales and Operations Planning (S&OP): Sales and operations organizations collaborate to align in order to ensure that materials are available to meet constantly changing consumer demands.
4. Artificial Intelligence and Robotics: Operations utilize technology in a way that efficiently eliminates bottlenecks in production.
5. Advanced Analytics: KPIs measure what success looks like across all functions related to supply chain and reduce risks the company faces. Know where material and information is at any time.
6. Perfect Order: Order fulfillment systems and processes are synchronized to ensure that your customers receive the right product, on-time, in perfect condition, with required documentation and invoicing without unnecessary user involvement.

When it comes to these trends, think about how you compare to your peers. Are you doing enough? Should you increase your focus in a particular area? Do you have a strategy to remain or become an industry leader? Ask yourself these questions, not just about the trends at hand, but also about the areas of business for which you are responsible and that you know best. It’s about pushing forward and ensuring your company is doing everything it can to strengthen its supply chain operations for the long term.

Check out our next installment of the supply chain blog series featuring Evaluation of the Maturity of Key Supply Chain Components.

We recently published a guide that explores these six leading trends in supply chain, as well as the importance of having a strong foundation to support them. You can download it by clicking here or filling out the form below.