Future of Supply Chain in Question - Reverting to Secretive Operations or Embracing Transparency?

Published on August 3, 2021

The Coronavirus pandemic has brought the world to a crossroads in Supply Chain Management, a topic of interest for political, business, and common leaders worldwide. The pandemic, with its dramatic and highly visible disruption, has shone a spotlight on the importance of Supply Chain, a field that manages and leads a large swath of a company's operations.

The pandemic has exposed the short-sightedness of some corporate leaders who failed to recognize the value of Supply Chain in establishing Ecommerce processes and capabilities. However, the world was not prepared for the pandemic, and lessons have been learned. People will be strengthened in their resolve to ensure preparedness for future events.

The latest generation of people entering the Supply Chain profession have bigger expectations and goals. They recognize Supply Chain as a field that offers a massive source of competitive advantage and differentiation, as the entire world of ECommerce is based on Supply Chain.

The Digital Supply Chain, which involves end-to-end electronic connectivity of a company with all tiers of suppliers and customers, is the central operational strategy for all companies in the future. Companies in Germany, such as those involved in the TWIN (Trade Worldwide Information Network) project, are already embracing this digital transformation. The TWIN project connects carriers, shipping lines, banks, customs authorities, and suppliers through decentralized identities, verifiable credentials, and distributed ledger technology, enabling secure, interoperable data exchange without sharing raw data outside company servers.

Innovating Supply Chain Management strategies for future growth is crucial. The use of Non-fungible tokens (NFTs) in Supply Chain Management is a promising development. NFTs promise to help eliminate challenges in supply chain management by providing a secure and transparent way to track products from their origin to the consumer.

However, investing in Supply Chain can be expensive, resource intensive, and lengthy. This results in barriers to investment and antiquated processes and infrastructure. There is a lack of Supply Chain education and certification curriculum that goes beyond functional training.

Effective risk management strategies are essential for maintaining resilience in supply chain operations. Robust and resilient Supply Chains are necessary to prepare for disruptions caused by natural or man-made disasters. Managing a supply chain involves navigating complexities and uncertainties.

The article suggests that businesses need to constantly adapt to metamorphosing areas of supply chain operations. The world needs Supply Chain to be in the spotlight, and the great people who work in the profession are the answer to its place in the forefront. However, Supply Chain leaders have not demonstrated an ability to lead beyond their functional area and run the overall business.

The article also discusses five crucial steps for Supply Chain Risk Management. These steps include identifying potential risks, assessing their impact, developing contingency plans, implementing risk mitigation strategies, and continuously monitoring and evaluating the effectiveness of these strategies.

In conclusion, the future of Supply Chain Management is promising, with innovations like the Digital Supply Chain and NFTs offering new opportunities for growth and efficiency. However, challenges remain, including the need for investment, education, and leadership. The world needs Supply Chain to be in the spotlight, and it's up to the professionals in the field to ensure that it stays there.

Future of Supply Chain in Question - Reverting to Secretive Operations or Embracing Transparency?