Many see today’s supply chains as the true wonders of modern existence. With the push of a button, the desired object will be delivered to your doorstep. Others believe that modern supply chains are disrupting local economies and destroying the environment.
Highly complex, interdependent and confusing supply chains were, until just a few years ago, largely the domain of mid-level executives, hidden from the newsroom and boardroom.
Pandemics, escalating geopolitical tensions, cyberattacks, and severe weather have made supply chains a ubiquitous issue under the scrutiny of boards and the White House.
Disruptions and irregularities in supply chains leading to escalating shortages, delays, and price increases have become the defining reality of today’s modern business. So is the impact of an ever-expanding knowledge set that sees modern businesses filled with black boxes of specialties that they “know, are important, but don’t really understand.”
The supply chain is used for one of these black boxes. But CEOs and boards are now demanding that the supply chain black box be opened up and fully accounted for. This is no easy task and one that CIOs need to address strategically.
CIOs as champions of transparency and data delivery
Before the pandemic, most people (even businesses) took supply chains for granted. If you need something to manufacture a product or need a part, simply order it and it will be delivered quickly, affordably and with predictable accuracy.
This is no longer the case. The supply chain realities are changing the way organizations operate and how new products and services are designed and delivered.
But the first step to making your supply chain more resilient is transparency. For IT, this means mapping the holistic end-to-end flow of materials, tasks, and costs from product/service design to final customer delivery.
The exercise explores supply chain challenges such as the automotive industry’s over-reliance on some semiconductor factories in Taiwan and the global pharmaceutical sector’s reliance on Chinese supplies for basic life science ingredients. Reveals high-risk areas.
A life sciences organization secured the raw materials needed to manufacture its final product, but was unable to account for supply issues related to the packaging of its pharmaceutical products. We ran out of ink to print the expiration date on the package, so we were unable to ship the product.
Adequate supplies of ink for labels, rather than raw materials for production, were the bottleneck in the supply chain. Companies need to pay attention to every aspect of their supply chain.
Of course, history teaches us that management tends to overcorrect in response to many crises. Yes, we have learned that our existing supply chains are not as resilient as we thought. But before redesigning the entire supply chain, CIOs and their executives need to gather estimates of what a more resilient supply chain will actually cost.
scholars DHL Initiative on Globalization at NYU Stern Management Future Center Remember, your stance on supply chain strategy is not static. 83% of executives Their company said it was planning near-shoring to regionalize its supply chain. When the same survey was repeated from March to April 2021, only 23% You said you were planning to do nearshoring. “
Historically, CIOs and IT organizations have provided and managed the transaction and information systems that drive supply chains.
In most organizations, IT and CIOs are not responsible for aggregating and understanding the end-to-end data that supply chain systems generate. They need to assist data analytics teams in implementing digital dashboards for end-to-end supply chain visibility.
Supply chain analysis This is an important way to help CIOs address this core business problem. It also helps ensure that the business’ strategic responses to addressing issues are measured, realistic, and impactful.
Analytics can play a role as well as messaging when it comes to customer concerns about the environmental impact of their supply chain.
the study MIT Sustainable Supply Chain Lab With the right messaging, it shows that “70% of surveyed consumers would be willing to delay home delivery by about five days if given an environmental incentive at the time of purchase.”
Additionally, the language used to describe the environmental benefits was also important. “
As such, CIOs should not only help establish ESG-related metrics on corporate supply chain impacts, but also educate customers about supply chain realities through customer engagement initiatives aimed at leveraging data to reassure customers. It also helps establish channels of open and honest communication with concern.
tag Supply chain