Krypt recently returned from the Annual Gartner SCM Conference where we had a chance to attend and take part in various discussions and educational sessions. Inspired by the meaningful discussions, we are going to explore the challenges facing the modern supply chain.
Network Complexity, Customer Demand Expectations, and Lack of Visibility rank amongst the top 5 obstacles in achieving supply chain goals.
These obstacles are further compounded by forces currently threatening to affect your supply chain including Global Purchasing Power, Digitization, and “Uberization”.
Supply Chain Obstacles
Supply Chain Network Complexity
On account of rapid economic growth and globalization it may seem obvious to point out “Network Complexity” as an obstacle; but don’t overlook it – it is a real hazard. We have seen our clients experience an influx in supply chain complexity especially when going through mergers and acquisitions, spin offs, and high growth periods. In such scenarios, organizations must face their newly merged or divided supply chain which often means technological landscapes with great variety and convolution. We partner with our clients to create a more united, integrated supply chain to help reduce complexity both for the your team and for the customer.
Customer Demand Expectations
Supply chain connectivity has evolved holistically and the customer has actually been integrated into the supply chain. Companies may fail solely due to the fact that their supply chain strategies and operations have become stagnant and inflexible around current customer expectations. It is worthwhile to spend time evaluating your existing and future customer expectations and map those against your existing manufacturing and supply chain capabilities. After all, without a happy customer base, how will your company survive?
Lack of Visibility
Implementing modern supply chain capabilities are playing a critical role in allowing companies to exploit emerging opportunities to boost growth and improve profitability.
Implementing reporting and analytics tools would help address the obstacle of a lack of visibility across the supply chain. Krypt Visibility came to life a few years ago to meet this exact need of our customers. Our reporting and analytics tool continues to evolve to meet the demands of our customers – to display different reports and analyze data to improve decision making and proactive measures.
The Human Element
Responding to supply chain obstacles through technology is essential, however, technology alone is inconsequential. Its material benefits are realized and optimized when enabling and empowering your people. Employees are the lifeblood of your company and inarguably, your company’s greatest asset.
The ability to identify, cultivate, and nurture talented individuals and then retain them is where the real difference is.
The supply chain ecosystem cannot be sustained without change. Furthermore, refusal to embrace technology may leave your business in a weak position.
Typically, organizations with exceptional supply chains have resolute support from the CEO and the executive team. A little by choice and a lot by necessity. Visionary leaders not only see the value in their SCM operations, but view it as a differentiator.
To wrap up our thoughts on the supply chain goals and challenges in 2017, we’ll conclude with a few points gained from the Gartner Conference.
- Plan for global demand shifting to emerging economies and supply shifting to Africa and Southern Asia
- With a faster connected economy expect to serve expanding customer choices generated from more fragmented demand points
- Allow your supply chain to differentiate its products, services and customer experience by introducing new technologies
- Shift to a talent and organizational strategy that injects new skills into supply chain and for execution on today’s efficiency goals and experimentation with bold new ideas for growth
- Anticipate corporate social responsibility to increasingly impact shareholder assessment of value and risk