The adagio that every crisis offers opportunities is very clearly demonstrated at the level of supply chains. The recent string of disruptions, including the Suez Canal incident, COVID-19, and raw material shortages, has compelled companies to examine their supply chain processes. This scrutiny has revealed that effective supply chain planning and management can yield significant value for organizations, whether it be in financial terms, sustainability efforts, or other areas. It is crucial to view this transformation as a journey, prioritizing the establishment of a strong organizational foundation before implementing supply chain technology.
A recent study conducted by EY and Oxford University highlights the accelerated pace of transformations occurring within supply chains. These transformations are a direct result of the series of disruptions experienced, with each event leading to valuable insights. The recognition of the need for change and the adoption of innovative approaches in supply chain planning are driving this process, as companies seek to enhance their operations and extract greater value from their supply chain networks.
"Until recently, the supply chain planner was actually primarily linear and transactional," says Tom Van Herzele, partner at EY Belgium and responsible for supply chain services. “In essence, their role primarily revolved around synchronizing supply and demand. However, this description merely encapsulates the fundamental essence of a planner, which is excessively limited and offers little added value.”
“This transformation necessitates the establishment of bridges between different supply chain domains, such as demand planning, supply planning, operations planning, and sales. By fostering alignment and promoting end-to-end collaboration, organizations can unlock the total added value of the supply chain process.” Van Herzele asserts that the incremental deployment of suitable technology is the key to building these bridges and enabling the transformation to take place.