How to Build a Shockproof Supply Chain Strategy

Businesses rely significantly on a reliable supply chain system to manage the entire manufacturing process, from the procurement of raw materials to the distribution of finished goods to customers. Integration, operations, procuring, and distribution are the four elements of the supply chain that collaborate to create a cost-effective and competitive path to competition.

What are the typical challenges that a channel partner faces in large and medium-sized businesses regarding Supply Chain?

For supply chain leaders, it isn’t a stretch to say it has been a street fight over the last 30 months to execute steadily on cost, quality, and delivery — the three pillars of any top-performing supply chain. And the challenges continue, which makes it more critical than ever to make sure your company’s supply chain is as shockproof as possible. The goal: Seeing your enterprise through immediate needs as well as mid-term and longerterm growth.

How companies can counter the challenges in their e-commerce and supply chain departments?

I think companies can think both strategically and tactically to understand where they are now and where they want to go. It encompasses everything from the relationships you have with your partners, the knowledge you have about your manufac- turing sites, and how you relate to larger environmental and social goals. As you look out at the long term, five years from now the strategy you put into place should not only be able to support your company’s projected growth but also ensure that risk mitigation tactics are built in.

What strategies can companies adopt for the effective functioning of their organisational structure?

Any 12-month plan is by its nature very tactical with some strategic activities in play. The 12- to 36-month view should become “stra-tactical” — tactical but with a strategy for crossing the chasm in terms of developing more mature processes. Three to five years out is more visionary around where you want to be with foundational tenants in place — consider your must-haves versus nice-to-haves. Let’s take a closer look at some of the key elements for building a shockproof strategy.

What are your thoughts on Supply chain collaboration or the relationship factor?

Developing strong relationships with both upstream and downstream partners and with customers is critical. With suppliers, active listening regularly helps facilitate communication and collaboration. Talking to supply chain peers among your customers, meanwhile, can help them understand what you are going through, and help you understand what their needs and desires are, what their concerns are, and what information they need to be able to quell anxiety from their teams. A side benefit for your colleagues on the sales side of the house: Having this level of visibility can improve your company’s ability to be responsive to customers’ product and service needs.

What is your view on The “factory rat” mindset?

I’m a factory rat, and it is a trait to encourage on your team.

There’s nothing like getting down on a factory floor and watching things happen. It’s a great way to look for opportunities for optimization because you can see things that others miss. It can be as simple as asking somebody on-site, “Why does this product go from here to there and back again? Why not keep it in one place.” Identifying small efficiencies can add up.

How can one balance the tactical with the visionary?

Even factoring in anomalies like the pandemic’s urgent need to focus on the tactical, any mature supply chain strategy requires a healthy balance of both the tactical and the visionary. Day to day, you must continue to sharpen performance measurement and management techniques. At the same time, it’s incumbent upon the leadership team to shape and define the direction you’re heading and the measures of success for when we get there. Here’s an analogy: You might be able to drive a car fast, but if you don’t know where you’re going, that’s irrelevant.

What is your opinion on Over-index on mitigating and managing risk?

Scenario planning — reflecting on “if X happens, how are we going to respond” — is an invaluable exercise that can build muscle for dealing with the unexpected. Creating a business continuity or disaster recovery plan and thinking it’s one and done-is not a good practice. You must keep it recent. To maximize its effectiveness, view it as a living document: If there is a tsunami somewhere, taking an outdated document out of the drawer won’t do you a lot of good.

How companies can commit to reducing environmental impact?

Prioritizing environmental and social aspects of your supply chain strategy can go a long way in helping your organization meet and uphold its commitments, by ensuring the ethical treatment of workers, for example. It is also good for the bottom line. One option is to look at nearshoring strategies that keep supply closer to demand. This carries benefits for minimizing disruptions, reducing logistics associated with moving products, and reducing carbon footprint/environmental impact. This shortening of your supply chain can also be a catalyst for driving product packaging redesigns to promote recycling and reuse.

The pandemic has forced us all to get a sustained view of the impact of stretched lead times for products and last-minute cancellations from suppliers. The ability to meet customer demands has never been more complex. Creating and maintaining a shockproof supply chain strategy can put your company in a position of strength for meeting any new headwinds. ë