Page 16 - Logistics News Oct Nov 2020
P. 16

Supply Chain




                            Bringing B2C digital



                   capabilities into your B2B




             manufacturing supply chain






                                                                                                Courtesy Perficient


             Complex supply chains have struggled to keep pace with the demands placed on them in 2020.



            EVEN BEFORE an unprecedented global                similar problems to varying degrees.
            pandemic crippled suppliers and halted                Large global companies now find
            shipments, an international trade war and          themselves struggling to overcome weaknesses
            an unexpectedly steady stream of natural           in their supply chains that have been
            disasters in recent years have created ongoing
 How to Find the Right Supply                                  accentuated by the coronavirus pandemic,
            challenges for supply chain managers. In
                                                               retaliatory tariffs and other disruptive events.
            response, supply chain leaders realised the
 Chain Management Consultant                                   These organisations are increasingly seeking
            importance of improving agility through
                                                               expertise outside of their companies that can
            digitising their supply chain and order            not only help identify the solutions required to
            management capabilities, and 80 percent            lead an organisation into the future, but also
            expect that the digital supply chain model will    source and implement them.
 Supply chain management is rarely a core competency for manufacturers.   considered a viable model,” said Yemisi Bolumole, associate professor of
            become predominant within five years.
 For example, a 2018 study  showed that more than half of B2B   supply chain management at Michigan State University’s Broad College
     2
                                                               Manufacturers adapt to the B2B channel
               From manufacturing to healthcare, many
                                                               shift
 sellers lacked the people, processes and technology to implement an   of Business. “The advisory model has evolved into a partnership where
            businesses failed to overcome disruptive
 omnichannel sales strategy.   obstacles in recent years – in part due to   The lack of agility in traditional manufacturing
                                              the consultant comes along on the journey because what they advise on
            manual supply chain management capabilities,       models left many organisations unprepared to
                                              paper may not execute the same way in practice. If Step Two doesn’t pan
            which are notoriously rigid. By design,            adapt their supply chains to meet the order-
 As such, the first step in a business transformation is finding the right   out the way your white paper said it would, then what’s the pivot? Who
                                                               centric demands of the modern B2B arena. B2B
            traditional B2B models scale up and down
 business partners. When an organization’s supply chain fails to keep pace   else do I turn to for new templates?”
                                                               transactions are commonly still facilitated by
            accordingly based on relatively predictable
            shifts in demand. Manufacturers across critical
 with industry demands, it may be time to seek outside help from vendors   fax machines, emails, phone calls, paper orders,
            industries now need to learn how to break out
                                                               manually filled spreadsheets and field sales
 or consultants who can analyze your end-to-end supply chain and provide  The ability to provide end-to-end analysis is key to success, as it ensures
 solutions to your pain points.   of their traditionally inflexible supply chain   reps. Digital supply chain solutions are often
                                              that addressing challenges in one area of the business won’t cause
            models and quickly gain the ability to pivot in
                                                               secondary for manufacturers if they have the
                                                                                                   3
                                                               capability at all.
            the face of disruption.           a ripple effect that causes other issues upstream or downstream.
 “Telling me what to do without putting in place a realistic,    However, the ability to offer practical system integration and process
                                                                  With a traditional ERP background set-up,
               The COVID-19 pandemic brought these
                                                               data is not nearly as fluid and dynamic as it
            problems to the forefront of the supply chain
 boots-on-the-ground implementation pathway can no longer be   support during the journey is also essential.
            sector as demand for medical devices, PPE          could be and you’re not getting data from
            and other essential goods put the medical          multiple sources and AI. That causes stagnation
            supply chain’s inability to adapt in the face of   and processing capabilities that are much more
            unexpected surges on display for the world         rigid.
            to see. Manufacturers and logistics operators         Procurement buyers are consumers in their
            across industries ranging from food production     personal lives, and consumer habits have led
            to electronics to consumer goods all faced         them to expect a certain level of service on
        14                                                                 October/November 2020  |  Logistics News
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