The crisis of the pandemic demands from SC leaders a new vision to build better organisations. Unstable market’s requirements force organisations to develop better SCs collaboratively. Executive parties are currently more concerned about SC resilience discussions than on problem-solving based on scientific methods to better understand the potential of SCs and data properties through modelling and supporting metrics.
Building better SC processes
It seems it did not work as expected. Some elements greatly influence our Management Operating System, such as boards’ different points of view, inaccurate advice, and over-evaluated technologies. The final purpose must be to build robust SC processes and technology operations in Data Analytics whilst assuring improved corporate performance outcomes.
A hard look at corporate performance
In the last years, while companies had the opportunity to use technology better, SC performing declined. Only four per cent of companies improved growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of stock.
Inventory
To move over the pandemic, your SC leader must teach the whole company to be more resilient, so you can outperform their competitors, as multiple organisations are moving backwards when talking about margin and inventory turns, most of them even before the pandemic.
What can we learn?
· We need to put the past-negative experiences of Supply Chain Management behind us. Our goal must be to start over, giving a chance to the implementation of technology.
· Using complicated terms for future implementation of edge-technology to drive a better understanding of what digital technology can bring.
· The implementation of Supply Chain Planning (SCP) such as SAS is an excellent model to hold different views from those Data Scientists the company could hire and increase your cost operation.
· Backcasting is another tool to support the organisation to polish up models through history. For instance, using data and performance from 2019 and 2020 to forecast 2021 and build a model compared to current models will deliver much better processes.
· Assess your demand planning model to find out whether you can do well with your current strategy.
· Check your current demand data level of variability to understand the forecast ability better and implement this insight to build your demand hierarchies.
· Do not allow being a more customer-centric approach to go over demand modelling. Leveraging both models, you will be far more successful.
Building an end-to-end Supply Chain
Collaboration is essential to build a robust SC. The synchronisation of all sections, such as Finance, must be aware of differences between SC and financial forecasting when setting up a forecasting process. They might have a different vision of an end-to-end SC, reason why there has to be a recognition on both parts for a viable SCP structure. They asked the production staff to produce more than possible, so, the negative-fixed impression of new goods got bigger every month.
As mistakes escalate, there is a demand for additional know-how to avoid vicious cycles that are complicating processes and worsening to grasp what is achievable; the lack of manufacturing modelling makes it challenging to figure out what is feasible.
It is vital to recognise that Financial and SC forecast is not the same. Therefore, you have to define the word “forecast” and what it implies for each section needs and objectives. Deal with the effect of bias every month and work hard to make sure it has a viable supply plan. Educate all participants by getting skilful at modelling to build asset and inventory plans centred on both bias and mistakes.
Improve customer service
Most of the time, the SC staff is considerate to manufacturing. The plant managers assume that they know SCM essentials, causing each section to predict and develop the sales and Operations Planning process. Some issues are that the manufacturing lines are having difficulties delivering the right product from the production lines to customers based on orders. The cost of low customer service rockets the price, so the team needs to improve customer service.
Teams must understand how to measure the demand plan accomplishment by assessing the Forecast Value Added (FVA) throughout the year. Too many changing management issues indicates a lack of SC leadership to force data-driven discussion. The shifting from regional to global SC amplified business point of view, with not many covering comprehensible governance. As a result, the requirement for a clear comprehension of SC strategy, measurement, and data analysis becomes indispensable.
Employees’ most important SC hard and soft skills
· The employee is a problem-solver.
· He/she has strong analytical skills.
· Can think out of the box.
· Can see cause and effect.
· The employee can see the big picture.
· Has strong work ethics.
· Can handle conflict peacefully.
· He/she has strong oral communication skills.
· Has strong written communication skills.
· Work well with others.
· Can follow instructions.
· Is a good listener.
· Can embrace diversity in people and ideas.
· Can take constructive feedback.
· The employee has good attention to details.
Further comments: it is time to build robust organisations by using new analytics methods to support your SC on data and new-functional metrics systems and technologies to lessen the team’s company’s politics.
How can you help Supply Chain leaders build up better SCs?
Are you collaborating to enhance better SC processes, or are you restraining them?
Dave Food