SupplyChainTalk: Creating a stronger and more transparent supply chain

On 15 March 2023, Supply Chain Talk host Chris Middleton was joined by Lewe Goldmann, Supply Chain & Operations Director, Cloud Nine Hair; Nijoy Robinson, Supply Chain Manager, Strategy, Analytics & Product, Deloitte; Kamil Evrim, Director, Supply Chain and OPEX, AMETEK; and Prof. Dr. Md. Mamun Habib, Professor, Independent University Bangladesh and University of Texas.

Views on news

The British Standards Institution recently reviewed some of the most common mistakes companies make with their supply chains. What they’ve found is that cyber mapping is a very important part of the supply chain resilience process. Mapping your supply chain means looking at the whole of your vendor process. First, a corporation must understand the supplier life cycle.

Next, the relationships within the local supply chain must be understood, such as who within the organization owns the supplier relationship. As the supply chain today is more of a network, distant disruptive events can have serious impacts on the other side of the globe too.

That’s why businesses are often unaware of where their secondary risk comes from, and supply chain visibility usually stops at tier 1. Black swan events, however, are unpredictable by nature. To manage them, businesses need to create instant feedback loops. Cyber mapping should include all the processes and cyber security risks as well.

Finding visibility and transparency

Entering new markets can be a great opportunity to migrate legacy systems to the cloud. As a result, real-time data becomes available on supply chain managers’ mobiles and the time saved by not having to switch between different systems and apps can be used for analysing data.

Digital twins of organisations collect data from IoT sensors and telematics devices into a centralised dashboard that enables quick decision making. This system also sheds light on sections of the supply chain that were previously inaccessible. Customer data from partners can drive innovation to meet customer needs. Today, businesses get hold of a staggering amount of data, Ametek, for example, collects hundreds of thousands of data points daily, which can’t be processed with legacy tools.

Robotics and automation at this stage is less about making humans redundant and more about filling the 11 million jobs vacant only in the US.  AI can help navigate the complexities and volatility of global markets, but it’s key to get the basics right before jumping on new tools.

Supply chain technology deployments often don’t bring desired outcomes, but, as a PWC survey shows, this is not down to technology but the lack of effective planning by users of the technology, as well as the absence of a well-articulated value delivery plan. The more visibility you have, the easier it is to build trust, which you also have to do internally, between departments.

The panel’s advice

Supply chains no longer operate as chains but as ecosystems, where traditional supplier-buyer relationships don’t work.

Scenario planning has to be based on the data relevant to that particular scenario.

You have to start a new partnership with your suppliers with distrust and build trust over time.

Opening remote locations near customers’ facilities can make the supply chain more resilient.

Support your supply chain teams with colleagues with engineering background that can help suppliers identify new manufacturing methods and technologies to shorten lead times.