It is always interesting to reflect and comment on the JOC Review and Outlook, and to compare our predictive views with the realities during the year.
Last January, I predicted that two primary supply chain developments would dominate 2015:
- The e-commerce revolution would grow and expand globally, both for B2C and for B2B, and this would cause major disruptions.
- Supply chains would change at unprecedented rates, and Cloud-based technology applications would expand to help enable these changes.
Perhaps these predictions were not particularly insightful, but they certainly continue to dominate supply chain management planning and execution. The “Titans of e-Commerce” — Amazon, Alibaba and Wal-Mart — have disrupted supply chains in almost every industry segment. And the growth of online orders is exceeding all previous estimates.
Supply chain changes are equally essential — not only to accommodate omni-channel operations, but to compete in general. Supply chains are being recognized more and more as the critical success factor for any business, both for profitability and survival. Operations strategies, organizational development and change management processes, and technology are being challenged for their effectiveness and efficiency.
Making changes is not easy — it requires knowledge, customer and supplier collaboration, expertise, and a roadmap customized to each business. The talent gap in supply chain management is a major barrier, as so many senior levels are retiring. Nonetheless, merely executing supply chains is necessary but not sufficient. Each company must determine for itself the right priorities and improvement agenda for success.
For 2016, we must ask ourselves the following two questions:
- Are your supply chains contributing to profitable growth? How should they be improved?
- Are your supply chains driven by operations strategies that enable your company to best compete? How should this be measured and assured?
Gene Tyndall, Executive Vice President, Global Supply Chain Solutions, Tompkins International