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Is your Logistics Visibility and Collaboration Strategy Ready for 2016 and Beyond?
President, Adelante SCM
Is your Logistics Visibility and Collaboration
Strategy Ready for 2016 and Beyond?
Elemica Executive Luncheon
June 21, 2016
First Supply Chain Analyst Report
Written in Cuneiform, c. 3200 BCE
What does it say?
If the advice is 5200+ years old…
“Supply chain visibility
and collabora4on are
cri4cal for success…”
…why are we still talking about it?
How most companies still work today
! Each func)on
driven by its
! Coopera)on vs.
Image source: https://www.workintelligent.ly/workstyle/culture/2014-4-15-organizational-culture-silos/
Which function is the center of your supply chain universe,
the one everyone else revolves around?
Software mirrors organizational structures
! Each app focused
! Data sharing vs.
Collaborate? Sure, Except I Don’t Trust You
Almost two-thirds of the poll respondents said
“you can’t be too careful” in dealing with people
Is that what you’re thinking when you’re sitting
across from a supplier, customer, or other trading
partner? Are they thinking the same thing about you?
Percent of respondents who say
most people can be trusted
Why are we still talking about it?
No ‘silver bullet’ solution It’s a moving target
Why does it matter?
! Same-day Delivery
! Smaller, more frequent shipments
! Omni-channel distribu)on
! Narrower )me windows
! Capacity constraints
! Mul)-mode, mul)-geography
! Regula)ons (e.g., HOS, Food Safety)
! Technology (Drones, Driverless Trucks)
#1 Challenge for
Supply Chain Execs
Getting that “Swing” in Supply Chain
“When you get the rhythm in an eight, it’s pure
pleasure to be in it. It’s not hard work when the
rhythm comes – that ‘swing’ as [rowers] call it.
I’ve heard men shriek out with delight when
that swing comes in an eight; it’s a thing they’ll
never forget as long as they live”
– George Yeoman Pocock from The Boys in the Boat
The First Steps to Improve SC Visibility
! Iden4fy and document the root causes of poor supply chain visibility. The root causes
generally fall into three categories: IT issues (e.g., lack of data capture systems or soware, poor
integra)on of systems); People issues (e.g., poor training); and Process issues (e.g., no metrics,
operate in func)onal silos). Simply put, if you don’t understand the root causes of poor supply
chain visibility, you won’t know what correc)ve ac)ons to take.
! Quan4fy the ﬁnancial impact of poor supply chain visibility. We all know that poor
supply chain visibility results in lost sales (out-of stocks), higher transporta)on costs (expedited
shipments), excess inventory, and reduced customer sa)sfac)on (among other nega)ve
consequences). Pu]ng a dollar ﬁgure on poor supply chain visibility, and how the costs break
down, not only helps you gain upper management support to take correc)ve ac)ons, but also
helps you to priori)ze those ac)ons.
! Enlist internal and external stakeholders to develop and execute solu4ons.
To paraphrase a popular saying, it takes a village to achieve and maintain high levels of supply
chain visibility. Assemble a team of internal and external stakeholders and provide them with a
clear and measurable mission to improve supply chain visibility -- and also provide them with the
necessary support, in terms of technology, resources, and decision-making authority to
accomplish that mission.
Break Down Functional Silos
! Don’t confuse Coopera)on with Collabora)on
! Leaders with x-func)onal responsibility– e.g., Chief Supply Chain Oﬃcer
! Develop a strategic planning and management system, such as the balanced
scorecard, that aligns “business ac)vi)es to the vision and strategy of the
organiza)on, improves internal and external communica)ons, and monitors
organiza)on performance against strategic goals.”
Change Mindset on Business Relationships
“In today’s rapidly evolving world, business
rela)onships based on an outdated ‘win-lose’
mentality won’t withstand a market that
demands constant change and adapta)on.
“Only by focusing on ‘win-win’ rela)onships
can companies drive innova)on and increase
their compe))ve edge.”
Think Beyond ERP
Leading companies have made two important realiza)ons:
! Their ERP system, which was originally designed for inside-the-
four-walls business processes and for companies that were more
ver)cally integrated than they are today, is not the best plaaorm
for cross-company communica)on and collabora)on.
! Business-to-Business (B2B) connec)vity -- that is, crea)ng and
managing thousands of one-to-one connec)ons with their trading
partners, typically using outdated technology like Electronic Data
Interchange (EDI) -- is not a core competency.
Supply Chain Operating Networks:
A Platform for Companies of Tomorrow
Quantifying the Value of SCONs
! Network-based BI and Analy)cs: How are we doing compared to
! Excep)on Management: iden)fy and resolve excep)ons faster and
! Risk Management: gain more )mely and insighaul insights about
emerging risks and events
! Innova)on: Generate more — and beher — ideas for improving
supply chain processes and solving exis)ng problems by tapping the
collec)ve insights, knowledge, and exper)se of employees and
partners across the supply chain
… beyond the usual metrics
! Aer 5200+ years, the )me has come to “walk the talk” on
supply chain visibility and collabora)on.
! Yes, it’s hard to do – there are no silver bullets and the target
! Iden)fy root causes of poor supply chain visibility, quan)fy the
impact in dollar terms, enlist internal + external stakeholders
! Don’t confuse coopera)on with collabora)on. Align goals,
metrics, and resources across func)onal groups.
! Think beyond ERP. You will ﬁnd innova)on at the intersec)on
of soware, B2B connec)vity, and social networking (SCON)