During a discussion with manufacturing and supply chain professionals at the Association of Supply Chain Management chapter of San Fernando Valley, California, we talked about strategies to unlock the future by mastering supply chain challenges and opportunities. The world is on fire with wars, conflicts brewing, and risks galore, which are negatively impacting manufacturers, distributors, and business owners. Beyond conflicts, there are supply chain risks, cyber risks, the lack of talent, and the opportunities and risks associated with technologies. Even with these headwinds in a volatile, uncertain, complex, and ambiguous (VUCA) environment, there are strategies to unlock future supply chain success. To dive into details on these topics, refer to our article, “Top Supply Chain Challenges”.
From the Russia-Ukraine war impacting commodities and agriculture to the war in the Middle East impacting the Suez Canal and exposing vulnerabilities in the global supply chain to China’s tensions with Taiwan and the rest of the world, manufacturers must be cognizant of their end-to-end supply chain. As China buys up land, terminals (such as at both ends of the Panama Canal) and builds infrastructure throughout the world, risks are heightened for products related to national security such as medical, food supply, and critical infrastructure. Similarly, there are extensive concerns about natural resources and rare earths since the majority are mined and processed in China, and they are required to support computer chips, cars, and almost everything we need. Energy powers manufacturing and logistics. Yet China has permitted a coal plant a week in the last year to support their manufacturing and energy needs. This seems to be at a crossroads with U.S. policies and focus on sustainability and zero emissions. Thus, common sense will have to come into play in the future of supply chain.
Thus, proactive executives are reshoring, expanding manufacturing, friendshoring, and moving towards regional supply chains. In fact, several are even vertically integrating to control the success of their end-to-end supply chain. However, they cannot do this successfully and profitably without talent and technology. As they automate everything possible to reduce the impact of labor costs, they will need more high-skilled resources. Yet because of the retirement of the Baby Boomer generation and the impacts of the pandemic, there simply are not enough high-skilled talent. Thus, they must build talent. Training, development, and mentoring will be hot topics. After all, your future will not be unlocked without leaders. In addition, a modern ERP system is a must for success to utilize CRM (customer relationship management), MRP (material requirements planning), and other functionality that will provide customer value and increase profitability.
To learn more about these topics, download our complimentary special report, “FutureScape: Crafting Tomorrow’s Supply Chain Today”.