In an ideal world for the Director’s of an organisation, all areas of the company will operate to their full capacity and there will be no disruptions to any processes. Unfortunately, this is not the case and those that play a role in decision making face an array of problems every single day.
As we have all experienced over the last few years, a crisis can arise at any time. Whilst a crisis can present some challenges and be painful in many ways, they also present us with all sorts of possibilities and opportunities. The disruptions caused by the COVID-19 pandemic to many countries and industries, and the supply chains that connect them, have been significant and persistent. Incremental improvement to supply chain during this period has not been enough to avert the disruptions faced and as a result, organisations have needed to make transformational changes to their supply chain.
Rather than looking at a supply chain crisis as a disaster, it’s time for management to look at the event of a crisis as an opportunity.
Supply chain transformation refers to the technological innovation and digitisation of an organisation’s supply chain. It involves ensuring you have the optimal amount of stock at the correct time, whilst also making the supply chain more efficient and cost-effective. An effective supply chain transformation will improve an organisation’s resiliency and agility to help better manage disruptions to any component of the supply chain. Other benefits of a supply chain transformation include:
The implementation of an effective supply chain transformation is a generally a multiyear project. Whilst it can be quite a lengthy process, management should not be discouraged by this as the benefits an organisation will reap from transformational change will significantly outweigh the costs.
You may be wondering, how much would your organisation improve from a supply chain transformation. This depends on a number of factors including your current performance and supply chain processes, your organisation’s ability to change and the leadership in place. Whilst the benefits can vary from organisation to organisation, a recent study conducted on businesses that have undergone a supply chain transformation found that the average overall performance improved 32% in comparison to pre-transformation performance(1).
The impacts to our supply chains over the last few years have been significant, however during these tough times our organisations have also been presented with opportunity. If you have the resources and commitment to perform a transformation and remake your supply chain to be more resilient and agile, you should be taking advantage. Although it can be a timely process, the benefits both your organisation and your customers will receive from a supply chain transformation will make you thankful for your decision.
Tridant's Sales & Operation Planning (S&OP) Application enables a connected supply chain with fast, accurate data analysis across your whole business. The solution assists businesses in achieving balance between fluctuating demand and supply though intelligent sales forecasts, ensuring efficient connection between all links within the supply chain. Find about more about the S&OP app here.
If you are considering undergoing a supply chain transformation for your organisation and would like more information, please contact us.
(1) Source: Gartner Blog Network