SUPPLY CHAIN
Pre-pandemic , the supply chain was viewed by most organisations as a cost centre-based function , and was largely invisible unless things went wrong . That was before things began going wrong all of the time . Now , businesses have come to understand that uncertainty and disruption – as well as the ceaseless drive towards sustainability – means supply chains must be transparent and agile , efficient , secure and ethical .
Accordingly , technology is introducing ever-more innovative tools and solutions that are revolutionising planning cycles and day-to-day decision-making in supply chain . Digital transformation is no longer a buzz phrase – something only for those companies in the tech vanguard to pursue . In today ’ s uncertain world , change is the status quo , and change is the only way organisations can expect to survive , let alone thrive .
Yet according to Deloitte 70 % of digital transformation projects result in failure ,
“Transparency and collaboration are really key to getting supply chains on the right footing ”
PAUL BLAKE SENIOR DIRECTOR OF ENGAGEMENT GEP and even when organisations do succeed it can take them years before they are ready to compete in the digital market .
Sometimes the failure can be because there is a mismatch between tech initiatives and business goals .
This is why supply chain analysts say it is vital that organisations identify the supply chain challenges and pain points they want to tackle , and then involve stakeholders from various departments in the digital transformation process , in order to increase efficiency .
It is also why supply chain consultants urge client companies to set standards and principles regarding how they will collect , manage , and analyse information if they want their digital transformation initiatives to be a success .
These are prerequisites for transformation projects in supply chain . Such across-theboard change can never be one-size-fits-all . The insight and guidance required has to be tailored to the business in question .
A recent study from GEP throws light on another problem area for transformation projects in supply chain : divergence of priorities between departments .
The paper – Supply Chain Convergence in a Disruptive Environment – suggests that years of disruption and cost inflation has driven a wedge between supply chain and procurement professionals . While procurement executives rank their first priority as reducing costs , supply chain executives say ensuring on-time delivery of supply is key .
58 February 2024