Deriving value from supply chain innovation in troubled economic times was the topic of discussion at a recent conference of health and personal care manufacturers and their service providers. Speakers from leading firms and academia explored the potential benefits that may be derived from bringing SCM to the forefront, addressing key areas in which HPC firms have been able to utilize supply chain improvements to generate value for their organizations.
Environmental turbulence will continue to increase, ranging from uncertainty in the economic recovery, to changes in variables related to regulations and policy, competition risk, and global complexity. Logistics and supply chain professionals, however, are uniquely equipped within their organizations with a tested set of tools that can be leveraged for success in an increasingly turbulent world. Such tools include deep knowledge and experience in managing:
- Internal Process Integration
- External Process Integration
- Relationships
- Technology
- Continuous Process Improvement - Lean/Six Sigma
- Network Design/Redesign
- Agility
Some highlights from the conference include:
Global Economic Trends
David Jacoby, president, Boston Strategies International predicted that credit defaults and unemployment will peak in the next two years, a significant chance for a second slide after a brief recovery exists, and there a significant chance of short-term inflation.
Strength in the global economy will be in emerging markets, especially Asia/China, and combined with a weak dollar, will significantly spark international trade and transportation. Global transportation capacity will be reduced to maintain carrier prices.
Supply chain management can only meet these challenges with cost rationalization, synchronization, customization, and innovation, requiring different skill sets from tomorrow's supply chain managers -- specifically, IT, international business, financial, cross-functional, interpersonal and cross-cultural skills.
Using Technology to Derive Value in the Supply ChainTim Sensenig, chairman and CEO, Gray Peaks, Inc., and Jeff Jagiela, director global logistics planning, Wyeth Pharmaceuticals discussed the need for improvement in 3PL services with emphasis on 3PL's IT capability and new 3PL configurations that can take advantage of emerging technologies.
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