Disruption is coming at us from all directions.
In a 2018 survey, 67 percent of participants across a number of Asia-Pacific clients in dedicated supply chain and manufacturing functions cited digital disruption as the most pressing challenge facing their operation.1
From a market context, customer expectations are evolving rapidly, as people have more information at their fingertips than ever before. Today’s consumer is fickle, price sensitive and at the same time demanding of a high-quality experience. Companies have to navigate exponential change, anticipate a range of consumer futures and stress test all their assumptions.
Other disruptors are also reshaping entire industries.
Technology is creating new trading platforms and dismantling old ones, and trade flows are being redefined by changes to foreign policy and tax regimes.
And in a globalized world, where climate change and human rights issues are everyone’s business, there is a greater spotlight on ethical sourcing and environmental sustainability. In this context, organizations must work harder than ever to maintain their social license to operate and encourage ethical behaviors across their extended supply chain network.
Traditional methods of manufacturing goods and moving them from place to place no longer work in a digital age. Companies need to evolve their supply chain strategies to deliver against the demands that omnichannel (any time, any place) requires of the consumer value chain.
At the same time, organizations are faced with “duality of growth.” Business leaders must transform their processes to achieve short-term objectives, while looking to the horizon to an entirely new business model, purpose-driven, with a differing competitive landscape.
Is it any wonder business leaders are struggling to adapt?
Increasingly, large multinational companies have little supply chain visibility, leaving them unable to meet customer demands and exposing them to more risk. Inventory levels are misaligned, there is leakage of materials and high running costs, not to mention low customer satisfaction and service levels.
Today, supply chain reinvention is not something restricted to manufacturing or logistics. Instead, the entire customer journey is at the heart of the process – which means everyone in the business must be involved in reinventing how the operation supports the growth of the business.
The goal is to identify quick wins – and to realize those wins quicker than ever before.