Supply chain disruptions and challenges have been in the headlines for a while now and many companies are reimagining their supply chain. As a result, companies are looking at:
- Nearshoring and/or onshoring
- Overall business processes
- Talent retention and skills training (where the gaps are)
- Leveraging and more effectively using their current business solutions software
- New technology and/or applications that reduce time/effort and fit closer with what they do
- Inventory integrity and supplier communications
- Moving scarce resources to higher margin products where possible
Whatever the case, having a vision, a future state plan, good problem definition(s), and an understanding of what’s missing/preventing us from achieving the reimagined supply chain future state can ensure a focus on the correct and most beneficial solutions.
People
Basically, the biggest challenge companies are facing is labor and skills shortages. According to The Bureau of Labor Statistics we could have 2.4 million open manufacture jobs by 2028 as a result of skills gaps. Retaining talent is more than monetary rewards & job satisfaction. Todays’ talent wants to be part of decision making, policy setting, and working towards a greater purpose. Companies that are creating opportunities that encourage employees to, master new skills, and contribute to a greater cause will win out. Creating a purpose, a vision, and allowing autonomy and creating trust with employees and teams will not only improve retention it will increase the rate at which the organization can move, make decisions/changes, and pivot as supply chain and business conditions change. Stakeholders and Employers mutually benefit.
Performance Improvement
Performance Improvement is a mixture of art and science and focuses on reducing effort associated to daily run activities and focuses more time on higher value-added activities and transformational improvements. Performance improvement starts with open communication and creating a safe environment to share ideas. Acting on ideas, quick wins, and speed of change are all instrumental in gaining momentum. The curation of solution(s) greatly depends on the future state and what’s missing/preventing us from achieving the vision.
Technology
When order backlogs are growing it’s easy to get stuck in the run and the daily routine. For stakeholders the routine becomes mondain and if not for a greater purpose a dead end, and job hunts begin. To allow stakeholders to spend time on higher value-added activities and master new skills organizations are automating routine business process(es) like:
- AP/AR
- Supply chain communications
- P.O. creation, approvals, and routing, and
- Raw materials and finished goods forecasting
To do so, they’re implementing technology tools necessary to reduce transactional effort and better communicate and coordinate with all parties along their supply chains.
Investing carefully
Investing in any type of transformation calls for a close and careful look at your company’s needs, culture, business processes, people skills, risk tolerance, and short- and long-term growth strategy. That said, growing your talent is imperative in today’s supply chain and business environment and the right solutions will certainly help.
Contact CSH for help building and/or implementing a comprehensive roadmap to a reimagined supply chain.
