Industryweek 14850 Myerson Lean Supply Chain Header 595

New Year, New Strategy?

Jan. 5, 2015
In today’s era, efficiency alone no longer wins by itself. Supply chain executives need to refocus their sights from cost-cutting and process standardization principles and look to create the lean, agile supply chain of the future.

Happy New Year everyone! As many people like to start the New Year out fresh, I thought it might be a good idea to look at current trends to help determine if it’s also a good time to make a fresh start on your company’s Supply Chain strategy.

In “The Chief Supply Chain Officer Report 2014 – Pulse of the Profession” from SCM World, O’Marah, John, et al identified some trends in the Supply Chain Profession as a result of feedback from 1,068 surveys of Supply Chain executives.

Some of the highlights, which you may want to factor into your strategic plans for 2015 and beyond, included:

Disruptive technologies

Big data analytics is the most disruptive technology impacting supply chain strategy – This is at least partially a result of the concern for volatile demand as well as a hope that improved visibility can result from mining huge new data sources.

The digital supply chain – this involves meeting increasingly complex demand requirements with speed and low costs by “shipping” software or other digitized product to the point of consumption (ex: use of mobile phone apps).

The internet - important as a way to know what is happening in the physical supply chain. Potentially useful for demand planning and “remote” control of physical assets.

Most Attractive Markets for Growth

Traditionally successful supply chain strategies will increasingly need to be tuned to serve markets with big potential payback, but new challenges operationally.

Summary of Findings

The survey findings conclude that “Chief executives can no longer afford to delegate strategic understanding of supply chain operations. The connectedness of supply chain capability to margin growth, market entry, product innovation and corporate responsibility now compels CEOs to master at least the broad strokes of what it means to be “agile”, as “growing volatility in customer demand, greater complexity in customer expectations and deeper operational integration throughout value chains.”

In other words, in today’s era, efficiency alone no longer wins by itself. Supply chain executives need to re-focus their sights from cost-cutting and process standardization principles and look to create the Lean, Agile Supply Chain of the future.

So maybe the New Year is a good time to start planning for a change in strategy as well as trying to lose the pounds you gained during the holidays!

Popular Sponsored Recommendations

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Discover Effective Cost Saving Strategies for Manufacturers

April 13, 2023
Boost your manufacturing revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market

Pacing the Path to Digitalization

July 23, 2023
Explore the latest trends, challenges, and opportunities facing the ever-changing manufacturing industry, and how organizations should embrace digitalization to stay ahead of ...

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!