Supply Chain Digital Magazine August 2023 | Page 53

MP : If you look in the pharma space , you ’ ve got new ecosystems around precision medicines [ that look at the genetics , environment and lifestyle of a person in order to select treatment that could work best for them ]. That ’ s a whole new value chain , and that ’ s what we ’ re seeing around ecosystems .

So if you take Unilever ’ s Home Care division , it has to create new value chains in the way it brings such products to market . So it ’ s not just one product to one surface – it ’ s the overall product line it ’ s delivering and it ’ s all about optimising these value chains .

Companies are taking a more holistic approach now to ecosystems and value chains ’ they ’ re not merely managing them . All of which is driven by consumer needs , the need for personalisation and the need for speed of delivery .

With innovation , what ’ s in it for suppliers ? ET : It ’ s like getting married ; you have to want to do it . It ’ s important when entering a partnership that you are clear about what your strategy is , and why you want to partner with someone .

Be clear on the objective , the KPI , and also be clear that sometimes we all need to adapt to a world that nobody can predict . It ’ s important we are very open about this , and that we transform around this .

So although you might have long-term agreements with suppliers , it ’ s good to aim for simplicity and flexibility . Life can get very complicated for suppliers , especially if they are a startup or a small company .

New Vizibl CEO Richard Hogg says supply chain strategy sharing helps form “ the fundamental basis for all other supplier engagement initiatives ”.

He adds : “ It serves to drive transparency and alignment between your organisation and its suppliers by clearly stating your strategic aims as a business .

“ Strategy sharing should include short , medium , and longer term plans , and include a sense of the pains your business is responding to .

“ This begins to give suppliers an idea of how they can strengthen their relationship with you based on your organisation ’ s priorities , and better meet and understand your needs .

“ Ir should also be reciprocal , with suppliers invited to share their strategic plans for their own businesses .”

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