Author

Lucy Harding

Published

7 October 2025

Estimated Read time

4Mins

The Global Head of Odgers’ Procurement and Supply Chain Practice explains why key leadership hires are critical

Global supply chains are no longer frictionless. Protectionism, tariffs, and trade disputes are now embedded features of the operating environment rather than temporary shocks. The “just-in-time” era, once celebrated for efficiency, has given way to “just-in-case” strategies that prioritise resilience.

This shift presents a fundamental dilemma. How can supply chain leaders fortify networks against disruption without pricing themselves out of competitive markets? The answer lies not only in process or technology but in leadership. Talent and leadership decisions increasingly determine whether organisations navigate this landscape with agility or stumble under the weight of volatility.

Tariff volatility: The practitioner’s challenge

Tariffs and trade barriers move with the tides of politics, national security, and global disputes. Their unpredictability complicates forecasting, procurement, and strategic planning. Traditional risk models, built around stability, are no longer adequate. Supply chain leaders must now integrate geopolitical awareness and scenario planning into their daily operating models.

US-China tariff escalations reshaped sourcing strategies across electronics, apparel, and consumer goods. Meanwhile, the EU’s carbon border adjustment mechanism is redefining competitiveness in carbon-intensive industries, and in response to EU tariffs raised on Chinese electric vehicles, China has just imposed 62% retaliatory duties on EU pork imports.

Such examples demonstrate that tariffs are not only a financial cost but a strategic disruptor that requires continuous vigilance.

Parallel supply chains: The costs of duplication

To mitigate these risks, many organisations are reshoring, nearshoring, or creating entirely new parallel supply chains. While such moves reduce reliance on single geographies, they come at considerable cost. Duplicating factories, logistics networks, and supplier bases is expensive and operationally complex.

The challenge is not purely financial. Parallel supply chains require duplicating talent, governance structures, and culture. The strain on leadership pipelines is significant, as demand for skilled local leaders in multiple regions often outpaces supply.

The most sought-after leaders are those who combine cross-border agility with the ability to build operations from the ground up. These individuals are rare, and the competition for their expertise is fierce. Boards and CEOs must therefore think carefully about where to deploy such talent and how to retain it.

Resilience vs. affordability: Walking the tightrope

Not every supply chain needs to be duplicated. The art of leadership lies in knowing where resilience is essential and where efficiency can still prevail. Some companies overbuild redundant networks, adding unnecessary costs. Others fail to act until disruption strikes, leaving them scrambling to catch up.

Effective supply chain leadership is about defining resilience thresholds. Where is duplication non-negotiable, and where is flexibility sufficient? What risks justify investment, and what risks can be tolerated? This balance demands both financial discipline and strategic foresight.

“Smart resilience” means making selective, data-driven decisions: when to invest, when to hold back, and when to exit markets or partnerships. Leaders who master this judgement avoid both complacency and overreaction.

The end customer: Who pays for resilience?

Resilient supply chains are not cost-free, and the question of who ultimately pays is critical. While some consumers accept higher prices for security, sustainability, or ethical sourcing, others are unwilling or unable to absorb the costs.

This makes consumer sentiment a central factor in supply chain leadership. Leaders must anticipate how different markets will react and develop transparent narratives that justify pricing. Those who fail to communicate risk appearing opportunistic or disconnected from customer realities. Those who succeed position resilience not as a hidden cost but as a value proposition tied to trust, sustainability, and reliability.

The leadership imperative

The skill set required to lead supply chains is evolving rapidly. Operational excellence remains essential, but it is no longer sufficient on its own. Leaders must combine geopolitical literacy with scenario-based decision-making and cultural adaptability. They must be comfortable operating amid uncertainty and skilled in building flexible networks across borders.

The talent pool for such leaders is limited, and demand is intense. I see boards increasingly seeking individuals who are both strategists and operators, capable of managing daily complexities while positioning supply chains as competitive assets. The ability to unite tactical execution with strategic foresight is becoming the defining trait of modern supply chain leadership.

From defensive to strategic resilience

Resilience is more than a defensive posture. For those who approach it strategically, it becomes a source of competitive advantage. Leaders who embrace resilience with clarity, discipline, and courage are not merely safeguarding their organisations but redefining the future of global supply chains.

The question for boards and CEOs is not whether resilience is affordable but whether fragility is sustainable. In a fractured world, can your supply chain afford not to lead?

  • People & Culture

Author

Nell Walker

Published

29 July 2025

Estimated Read time

4Mins

A survey reveals that specific delivery slots and real-time tracking are now consumer expectations, with many willing to pay for predictability.

A shift is underway in e-commerce delivery expectations with new research confirming a clear trend: consumers no longer tolerate uncertainty. Four-in-ten (40%) consumers now demand non-food home deliveries to arrive within a specific time slot. This is typically a two to three-hour window. This expectation climbs higher in key markets, reaching 44% in the UK and 43% in the US. The findings signal a clear power shift towards consumers seeking unprecedented control and transparency in their online shopping experience, forcing retailers and parcel carriers to adapt or risk falling behind.

The research, commissioned by Avery Dennison, a global materials science and digital identification solutions company, surveyed 5,000 consumers across the US, UK, France, and Germany. Findings from the survey — one of the largest of its kind — underscore a growing demand not only for on-time deliveries, but also for precise control over when, and how, parcels arrive.

A shift toward greater control

Although consumers today are more sensitive to cost than ever, six-in-ten (61%) shoppers are willing to pay a premium for more detailed insight into order tracking.

When asked what would justify payment for a premium delivery service (and invited to select ‘all that apply’), 47% stated faster delivery, making this the top overall choice, followed by 31% who said ‘accurate estimated delivery times.’

The survey also reveals that tracking expectations vary depending on the type of purchase. For example, 60% of respondents say parcel tracking is ‘very important’ when ordering electronics, 43% for fashion, and 38% for health and beauty.

Personal convenience is at stake. When asked to select up to three main benefits, the top reasons respondents gave for wanting enhanced tracking are:

  • Flexibility to leave the house without missing deliveries (54%)
  • Peace of mind knowing where the parcel is (54%)
  • Ensuring timely arrivals for special occasions like birthdays and anniversaries (44%)

To meet these exacting consumer demands, retailers and their logistics partners must act now or be left behind.  Technology can assist in the drive to provide enhanced real-time visibility in the parcel delivery process.

Opportunity for elevated consumer satisfaction

For international e-commerce, real-time tracking has become even more critical as recent tariff changes disrupt cross-border shipping, causing extended delays and price increases.

Yet at the same time, cost remains a factor. According to McKinsey, 90% of consumers are willing to wait an extra two to three days if it means avoiding high shipping fees, highlighting a growing preference for flexible delivery options that balance speed with affordability.

“The message from consumers is loud and clear: they expect precision and control over their deliveries,” says Julie Vargas, Vice President and General Manager of Identification Solutions at Avery Dennison. “Customers may tolerate delays — but only if they’re kept in the loop. Real-time visibility shouldn’t be considered a luxury anymore; it’s the price of staying competitive. Retailers and carriers who embrace transparency will not only ease frustrations around shipping delays and rising costs, they’ll earn lasting customer trust in a tough logistics climate.”

Vargas adds: “There is a natural eagerness from retailers and carriers to cut down on expensive WISMO (where is my order) inquiries and manage costs more effectively. They recognise the benefits of providing self-service parcel tracking apps and tools powered by GPS and RFID technology, which ultimately help keep shipping rates affordable. Offering real-time updates on a package’s whereabouts is now a key foundation of this trust.”

Winning the parcel shipping game

Avery Dennison’s research also reveals that consumers find current tracking systems unreliable and insufficient. The most-cited frustrations are inaccurate notifications, inability to change delivery time or location, and premature ‘delivered’ status updates. Deploying intelligent labels at package-level helps vendors and distributors overcome these shortfalls in service.

Vargas concludes: “As the research highlights, to remain competitive in today’s e-commerce landscape, retailers and carriers must prioritise transparency and innovation in their delivery process. With almost two-thirds of shoppers willing to pay more for tracking and notifications, leveraging advanced technologies and offering real-time visibility is crucial. The pressure is very much on to address consumer needs, and turn frustrations into trust.”

Download The Consumer Verdict whitepaper here.

  • People & Culture

Author

BWS

Published

21 July 2025

Estimated Read time

5Mins

When putting together a bid strategy or business proposal, it’s crucial to showcase value that extends beyond simply offering the lowest price.

Winning new business proposals is no easy feat. And writing them is unfortunately no easier. For new or small businesses, the process of bidding for contracts can be overwhelming, and leave you feeling unsure on what you truly bring to the table, especially in the face of stiff competition. 

If you’re left wondering what you can really offer a potential customer, the obvious choice might be to undercut on price. After all, better ROI and a lower price tag should tip the scales in your favour, right? But relying on a low price point not only risks damaging your credibility, but it also overlooks one key opportunity; showcasing your strengths, and positioning your business as the better choice. 

The key ingredient to successfully winning new business is to accentuate your value. The experts at BWS demonstrate how to go beyond cost and demonstrate why your business is the right choice.

Why price alone doesn’t define value

Whether drafting contracts or mapping out business proposals, focusing on lower prices can hinder success, even if the tender is evaluated on Quality vs. Cost. While of course it’s important to offer a competitive price, demonstrating tangible value, expertise, and aligning with your potential client’s needs, will produce far better results. 

How to position your business as the ‘best choice’

  • 1. Prove you meet (and exceed) the requirements

The very first step in positioning your business as the obvious choice, is to establish how you meet, and exceed their requirements. You’ll want to demonstrate that you meet every specification set out by the client, and how exactly you meet them. How do you meet the technical, commercial, and qualitative criteria set out – but more importantly, how can you go above and beyond and quantify how you will add extra value – as this will set you apart from the competition.

  • 2. Define your core messaging

While you should always start a proposal by catering to the client’s specified criteria, your business’s core needs to speak loudly too. Why should they choose YOU? What makes you a better fit? But most importantly – what is the real value you can bring to the table? Once you have determined your core messaging, and found your overarching concept or promise your brand stands behind, it will be much easier to ensure you are conveying this throughout the entire proposal. 

  • 3. Demonstrate expertise and evidence of success 

Words are words until they become facts when backed up with evidence of success. Which is why it’s important to showcase relevant experience, and know-how. You can do this by offering examples of completed projects that relate to your client’s ambitions and the positive outcomes. If you are in the early stages of your business, concentrate on showcasing relevant expertise such as team experience, credentials, past roles, and case studies – that way you can showcase credibility and capability without relying solely on a long track record. 

  • 4. Offer unique solutions 

Focus on how your work will benefit the client, and offer unique solutions tailored to their pain points. Demonstrate how your approach addresses their specific circumstances, avoiding vague or generic claims. Ensure you reference their industry, location, size, or operating environment, and personalise your language and tone to mirror the terminology of the client. By aligning your specific solutions – tailored to their specific needs – you will demonstrate that your proposal is custom-fit to their criteria. 

  • 5. Present as the risk-free offer 

At times, when starting out as a small business, it can be tricky to avoid being seen as a higher-risk offer. Longstanding companies have larger amounts of testimonials, case studies, and project stats – which can make it difficult to compete with. But don’t let this stop you. When bidding for new tenders as an SME, ensure you present yourself as a risk-free offer by including quality assurance measures, any accreditations or insurances for peace of mind, along with contingency plans to show buyers that you are prepared, and resilient in the face of any unexpected challenges.

  • 6. Provide value other than cost

As mentioned above, it can be easy to fall into the cost trap when starting out. But besides the fact that offering lower than market average costs can be damaging, it can erode trust and credibility in the eyes of the client. In this stage, focus on value for money rather than low-cost services. And ask yourself; do you have strong innovation plans? Are your projects injected with social value measures? And are you able to work more efficiently than other competitors? Not only does value build trust, loyalty, clients also want assurance that their investment delivers real benefits, not just savings – the key to repeat business. 

Michael Baron, Managing Director at BWS weighs in:

“When reviewing business proposals, clients aren’t just buying a product or service; they’re buying partnership, trust, and the strongest indicators of a positive outcome. It’s essential to demonstrate that you understand the client’s world, and that you’re not just going to answer questions correctly, but instead anticipate their needs. Instead of solely offering value for money, consider offering a unique approach to reducing their risk, strategies that support their long-term business goals, and ways to deliver intrinsic value throughout their project lifecycle. That way, you instantly become more than a supplier – you become a strategic asset.”

  • People & Culture

Author

Sophie Tuson

Published

14 May 2025

Estimated Read time

3Mins

Sophie Tuson, Senior Associate and Environment and Climate Change Practice Lead at RPC, marks the policy’s 10-year milestone and highlights its significant role in reshaping habits.

The plastic bag charge is a standout example of how a simple legal intervention can spark lasting behaviour change. Since its introduction in 2015, the tax has been a resounding success in reducing the number of plastic carrier bags used in the UK. 

According to government statistics, single-use plastic bag consumption has plummeted by more than 98% at major national retailers. The average person in England now buys just two plastic bags a year – down from a staggering 140. That’s a remarkable difference and demonstrates how effective policies can deliver powerful results.

Sparking a widespread cultural shift

The early grumbles over the 5p (turned 10p) fee have long faded, replaced by a widespread cultural shift. Today, reusable bags are the norm, and the once-ubiquitous rustle of plastic at the checkout has become a rare sound. Instead of single-use plastic, think trusty Bags for Life and trendy canvas totes. 

Ten years ago, the charge only applied to businesses with more than 250 employees, then in 2021, the governmented updated the law to apply to all businesses, no matter their size. Supermarkets, high-street retailers and large department stores have embraced the switch, and as a result, we’ve witnessed a dramatic decline in the use of plastic bags across UK retail.

While legislation is often seen as slow to catch-up with evolving social and technological developments – think AI regulation – in some cases, it leads the way. Much like the 2007 smoking ban, the plastic bag charge redefined what’s socially acceptable almost overnight. 

Moving towards a sustainable future

By and large, consumers want to shop more sustainably, and regulation like this provides the nudge to help them do so. It is also a useful signal for industry; by setting clear legal rules and regulatory frameworks, the introduction of the plastic bag charge has given businesses certainty, enabling them to plan and invest in product re-design. 

Its ripple effects are still being felt. The tax has paved the way for broader reforms in the UK packaging landscape, including the Plastic Packaging Tax (PPT), which targets packaging with less than 30% recycled content, the recently introduced Extended Producer Responsibility for packaging, and the upcoming Deposit Return Scheme for single-use drink containers. Each of these initiatives borrows from the plastic bag charge playbook, building on a sense of shared responsibility between government, business and the public.

Why it’s a policy win worth celebrating

A decade on, the plastic bag charge deserves recognition as a legal success story. It drove major change with minimal disruption and is a policy win worth celebrating. The impact of the tax is a timely reminder that smart, targeted regulation can do more than respond to problems; it can spark lasting cultural change. When consumers, organisations and policymakers align behind a clear, sustainable goal, the results can be transformative – even if they start with just 5p.

  • People & Culture
  • Sustainability

Author

Stuart Platts

Published

2 January 2025

Estimated Read time

5Mins

Stuart Platts, Head of Support at Symatrix, explores the essential elements of mastering supply chain management in the modern world.

APQC’s latest research on supply chain priorities and trends has shown 2024 to be another challenging year for supply chain professionals. This has been reflected in events such as the ongoing Red Sea crisis, the Baltimore bridge crash and Hurricane Beryl causing disruption for businesses. 

The need for a resilient and adaptive strategy to successfully manage these unpredictable events and demand is crucial. For example, more organisations are looking to enhance their supply chain management (SCM) capabilities to better manage the flow of goods, information and financial resources from suppliers to consumers to react to different scenarios at short notice. When done right, effective SCM can drive operational efficiency and simultaneously boost customer satisfaction. (A ‘win win’ situation!)

But organisations are also battling supply chain worker shortages and high staff turnover, particularly across frontline operational employees and planning, logistics and management employees. Long hours, unfavourable working conditions and restrictive career paths are all adding to the problem. So, with many an obstacle facing supply chain professionals, how can they effectively combine people and technology to ensure SCM is meeting its best potential?

Core challenges in SCM

Among the most pressing concerns in SCM today are demand fluctuations and the need for real-time visibility across the supply chain. It can be incredibly difficult to predict the level of demand facing specific products due to external factors. For instance, significant increases in the cost of energy during the 2022 crisis led to the demand for air fryers to rocket by 3000% in the UK, and this is just one of many such examples..

Economic shifts, changing consumer preferences and disruptions in global trade can also impact demand. Companies have to work with suppliers to ramp up supply without overextending resources or holding excess inventory and decrease supply if demand suddenly dips. A comprehensive and unified approach to SCM can enhance visibility, from procurement to delivery, and allow businesses to proactively identify and resolve potential issues before they impact operations.

Unifying SCM and HR 

Technology empowers supply chain management executives to integrate both SCM and HR processes on a single cloud platform. By unifying these functions, organisations gain a holistic view of their operations and workforce. 

With SCM and human capital management (HCM) working together as one unit, more informed decision-making can be actioned with the support of real-time data and predictive analytics. Even when unpredictable global events arise, forecast modelling and simulations can help organisations understand the potential positive and negative impacts on the wider supply chain, including the availability of the workforce. 

To an outsider, positive outcomes in these scenarios may seem like good fortune, but in fact, they are invariably the result of careful planning, strategic foresight and leveraging the right tools and data. 

Organisations can also identify which locations in certain countries are most in need of enhanced staff engagement strategies, or how absences are impacting late product deliveries. It can even inform them of warehouses that are experiencing the highest staff turnover rates and help devise solutions on how to address it. With talent needs and bottlenecks identified, businesses are handed back control and can deploy people, where required, to avoid disruption. With this real-time information, they can also provide an improved employee experience which can help to curb high turnover and repeated absences. 

The evolution of supply chain technology

It’s essential for Chief Supply Chain Officers (CSCOs), operations managers and HR leaders to align on organisational objectives, and a combined SCM and HCM platform allows them to do so. Workforce modelling and predictive algorithms can help to improve workforce capacity planning. In a scenario where a CSCO wants to build a new warehouse in a certain country, HR data can provide visibility of the talent requirements and availability in the local region to ensure that no budget for the build is wasted from a chronic local shortage. 

Emerging technologies are further helping supply chain and HR leaders to gain a competitive advantage. For example, advancements in data pattern reporting are revealing the causes of high turnover rates and other problems in the workforce. 

Augmented analytics can add external data to analyses such as benchmarking or compensation comparisons, or unlock new sources of workers. Advancements in predictive analytics have allowed businesses to compare future sales orders to staffing levels and uncover any urgent capacity needs. These solutions are coming together to reduce supply chain disruptions. Voice interfaces are even providing improved accessibility and speed so users can get answers quicker.

Moving forward, AI will build further on these capabilities by creating the potential for self-learning analytics that will, when integrated with supply chain management, and HR solutions, provide more focused information, much more rapidly than before. This will ultimately drive continuous improvement and efficiency in SCM.

Refining SCM for future growth

In an era where unpredictability has become the norm, mastering SCM is more critical than ever. The challenges of 2024, from natural disasters to workforce shortages, highlight the need for strategies that are both resistant and adaptive to rapid changes. 

Effective SCM, when integrated with HCM functions, can significantly enhance operational efficiency and customer satisfaction.

The next step is to unify supply chain operations and HR on a single platform. Organisations can achieve a comprehensive view of their operations and workforce, enabling better decision-making and workforce planning. 

This holistic approach allows businesses to anticipate and mitigate risks, optimise their resources and remain agile in the face of disruptions.

  • Collaboration & Optimization
  • People & Culture

Author

Stuart Swindell

Published

7 November 2024

Estimated Read time

4Mins

Stuart Swindell, Risk and Compliance Strategy Director at Dun & Bradstreet, takes a closer look at supplier relationship management in the run up to 2025.

As the global business landscape continues to evolve, organisations are increasingly prioritising Supplier Relationship Management (SRM) to navigate a complex and uncertain supply chain environment which is fraught with geopolitical tensions and climate-related disruptions. SRM now requires a systemic approach from organisations. By developing mutually beneficial relationships businesses can enhance supply chain efficiency, quality, innovation, and risk management.

Our latest Global Business Optimism Insight Report found that businesses are quietly optimistic. The Global Business Financial Confidence
Index improved 12.3% for Q3 2024, as businesses worry less about supplier delivery time, delivery cost, and concentration. However, managing disruptions to supply chains effectively and maintaining supplier relationships in the face of global adversity remains a challenge. 

Adapting to the new normal

Globally, businesses predict that supply chain risks will remain elevated and have proactively adapted to this new environment. 

Geopolitical tensions, soaring shipping and freight costs, unsafe trade routes, protracted delivery delays, container shortages, and traffic jams at several transshipment ports serve as obstacles to supply chain continuity. In the UK alone, supply chain continuity took a 10.8% hit as the country grappled with lorry driver shortages and other means of land transport, as highlighted by our latest research. 

Labour disputes, industrial action, and the growing danger of pervasive cyberattacks for third-party suppliers are exacerbating organisations’ concerns. Around the world, organisations are braced for sustained supply chain risks. As such, the focus on robust SRM strategies has never been more critical to maintaining continuity and competitiveness.

Shrinking confidence in large businesses

The third quarter of 2024 revealed stark differences in how businesses of varying sizes are coping with supply chain challenges. 

Optimism among small businesses surged remarkably by 21.8%, thanks to their ability to source locally. Nevertheless, medium and large enterprises remain cautious, facing a decline of 2.4% and 13.4% respectively in their confidence indices. This disparity underscores a growing trend: localised supply chains are proving more resilient. Large businesses linked to global supply chain networks and sources across geographies face the most exposure to unpredictability. This is true whether in terms of shipping costs, congestion across routes, or lengthier routes. 

For the past decade, many companies have prioritised lean supply chain strategies aimed at reducing waste and maximising value. One on hand, this approach seeks to provide customers with what they want at the lowest possible cost. Hwoever, it’s impossible to deny that it has made supply chains increasingly fragile. Companies have become overly reliant on limited suppliers and just-in-time delivery models, leaving them vulnerable to disruptions. 

Recent shocks have shown that supply chain challenges disproportionately impact these lean organisations. To combat this fragility, businesses should adopt flexible strategies that incorporate multi-sourcing, near-shoring, and on-shoring practices. Building redundancy within inventory systems may seem counterintuitive to lean principles but it is essential for ensuring resilience in operations. By diversifying their supplier base and maintaining a buffer of critical supplies, businesses can mitigate risks associated with localised disruptions. Not only that, but they can ensure continuous supply, minimising delays and maintaining service levels despite any unforeseen challenges.

Additionally, knowing your consumer demand can help expose any business vulnerabilities, giving owners a better understanding of their business operations. 

How data and collaboration can bridge the resilience gap

In times as uncertain as these, adaptability runs supreme. By harnessing real-time monitoring and predictive modelling, businesses can identify potential risks and vulnerabilities within their supply networks based on historical trends, market dynamics, and weather patterns. 

This proactive approach of incorporating data and analytics enables swift response and adaptation enabling companies to safeguard against disruptions and ensure business continuity. 

Businesses of all sizes should also lean on strategic diversification to mitigate supply chain risks. By diversifying their supplier base geographically, businesses can reduce the impact of disruptions in any one region. 

Furthermore, by moving production closer to consumer markets or forming agreements with suppliers in politically stable regions, organisations can minimise the risk of unforeseen, wider disruptions while maximising cost-efficiency. In this volatile landscape, effective SRM is no longer just a competitive advantage—it’s a necessity. Collaborative initiatives such as supplier partnerships and consortiums can also foster greater resilience. by pooling resources and expertise to address common challenges.

The challenges faced by businesses across the supply chain must be seen as a clarion call for leaders to reevaluate their approach to supply chain resilience, and proactive risk management and strategic foresight prove to be indispensable tools for navigating the complexities of today’s interconnected world. By leveraging smart data and analytics in risk monitoring, organisations will be better positioned to understand the evolving risk landscape enabling proactive decision-making and agile response strategies which will ultimately lead to a more resilient supply chain. 

Adopting emerging technologies and automation tools to enhance efficiency, and transparency will chart a course towards resilience and sustainable business growth in the face of macro-challenges that are beyond a business’ control. 

Moving forward, organisations that can successfully navigate these complexities will be better positioned to ensure supply chain continuity and maintain a competitive edge in an unpredictable world.

  • Collaboration & Optimization
  • People & Culture
  • Sourcing & Procurement

Author

Andrew Woods

Published

7 August 2024

Estimated Read time

4Mins

Laure Collin, SVP of Human Resources, Global Supply Chain, at Schneider Electric, discusses the value of human capital in supply chain management.

The benefits of Fourth Industrial Revolution technologies for supply chains are clear – greater operational efficiency, sustainability outcomes, and resilience. 

As companies are deploying these digital solutions throughout their organisations, they are faced with a challenge – how to ensure their people develop the skills needed in this new, more digital supply chain. Here are four aspects any supply chain leader should consider.

Digital Supply Chains must be Human-centric

The manufacturing industry is facing a huge labour shortage. According to the World Economic Forum, more than 10 million manufacturing positions are open today. 

Ther’es no denying AI and machine learning have made significant advancements in recent years. However, people remain the backbone of any successful supply chain. Why this labour gap? One significant cause is the higher demand for tech skills.

As companies go through digital transformation, ensuring people remain at the heart of their supply chain strategy is critical. It’s a simple equation: training current industrial talent for the digital world while also investing in the new generation builds a more vibrant, efficient, and future-ready operation. It’s unlikely we will see a sudden surge of digital supply chain talents on the market soon. Therefore, the most obvious step for organisations to take is ensuring their workforce is upskilling and reskilling for the future.

Between 2021 and 2023, Schneider Electric increased digital talents across our supply chain organisation by 67%. This upskilling took place from the shopfloor to senior management. Here’s how we did it.

Reskill, upskill: connecting and nurturing digital skills in shopfloor employees

No matter how advanced technology becomes, it is the people at the ground level who are its primary users. Employee skills can make or break the success of implemented technology. Any digital skills strategy must be inclusive and include your employees working in your factories and distribution centres.

At Schneider Electric, we are equipping our shopfloor employees to become data-driven wizards and automation gurus. One critical step is ensuring they are digitally connected. 

We have connected approximately 40,000 employees across 175 factories and distribution centres to a digital communication tool, enabling them to receive and send communication in real-time. 

This breaks down traditional barriers and connects the shopfloor teams to managers and remote experts. It also ensures the team has greater access to knowledge and problem-solving, sharing best practices and troubleshooting tips across sites. This helps us scale best practices, including digital solutions, across the organisation.

You can’t change what you don’t measure. That’s why we have mapped digital competency across the supply chain organisation – from individuals at the site level to leadership. This transparency has tangible benefits: personalised learning paths for talents across the organisation, skill-gap analysis that empowers managers to drive development of their teams, and executive visibility so we can make informed decisions on where to invest.

We have also created a dedicated program to develop and engage shopfloor employees in automation manufacturing, focusing on three critical domains: programing and automation, digital and technological proficiency, and data analysis interpretation. This ensures these employees can develop the skills and expertise they need for today and tomorrow.

Fostering a Growth Culture: A Collaboration of Learning and Adaptability

The volatility and uncertainty we have seen over the last few years has revealed the new skills, capabilities, and mindset needed for success. Our new world requires new ways of working, and it’s crucial to create a culture that values continuous learning, creative problem-solving, and innovation.

It’s important for leaders to encourage curiosity and open-mindedness, recognize and reward behaviours that demonstrate learning and innovation, and offer flexible learning opportunities that accommodate individual needs. This way, both organisations and their employees can adapt to new technologies and changes in business operations at their own pace, ensuring a smooth digital transformation. 

Our Catalyst Leadership program gives our people managers the skills to be more agile leaders and support their teams in their development.

But there are digital tools that can shape the culture too. Open Talent Market is an AI-driven technology that has helped Schneider Electric match our internal supply and demand of talent in a transparent, borderless, and unbiased way. Employees use it to develop, grow, and shape their futures. Now, they can select a mentor, contribute to a project, or even apply for a new role.

Navigating Towards the Future

As we navigate towards an exciting yet ambiguous digital future, it’s crucial to remember that people make technology work. The key is to create a digitally competent and operationally effective workforce that can navigate the stormy waters of digital transformation.

Building digital expertise and instilling a culture of continuous learning within your supply chain organisation is not easy. However, those willing to invest time, effort and resources will find that they are better prepared to tackle future challenges, seize opportunities, and effectively drive their organisation’s digital transformation journey.

  • Collaboration & Optimization
  • People & Culture

Author

Andrew Woods

Published

30 July 2024

Estimated Read time

4Mins

Kevin O’Marah, Co-Founder and Chief Research Officer at Zero100, tracks the trajectory of today’s supply chain leaders headed for the CEO role.

When choosing a new leader to sit at the helm of a major multinational company, there’s no such thing as a low-risk appointment. So, it’s no surprise that more than three-quarters of current Fortune 500 CEOs are internal appointments. Sure, outsiders can bring valuable new perspectives and approaches but, when it comes to the crunch, it’s a lot safer to give the top job to someone who already knows the business inside and out. 

Looking inside the company for a new CEO

No one knows the day-to-day details better than the Chief Operating Officer (COO). Just ask Tim Cook, who spent half a decade as COO at Apple prior to becoming CEO of what is today one of the most valuable companies in the world. 

Apple’s share price has risen 4x over the past five years alone, and much of this success can be traced back to decisions Cook made while he was COO, such as paring back the number of supply chain vendors, adapting advanced manufacturing models and forming critical deals with manufacturers on flash memory.

In an era defined, on the one hand, by the pursuit of global brand dominance and, on the other, by the relentless need to satisfy shareholder and market expectations, COOs aren’t always the most high-profile choice for the top job. But as Tim Cook’s journey shows, they’re more than capable of making the transition. However, the business world is ever-changing. The past few years have forced Fortune 500 firms to battle relentless macro headwinds, from COVID, geopolitics and trade wars, to inflation, talent shortages and heightened environmental and sustainability pressures. 

Boards have been forced to relearn the time-honored truth that business success is ultimately defined by operational efficiency and resilience. In the vast, complex and interconnected global marketplace, this means focusing on supply chain supremacy.

It’s why more and more Fortune 500 firms are adding dedicated supply chain roles to the C-suite. And it’s why today’s Chief Supply Chain Officers (CSCOs) could be in pole position to become tomorrow’s Fortune 500 leaders. 

From COO to CSCO (to CEO)

There’s already plenty of precedent here. From Mary Barra at General Motors to Gerry Smith at The ODP Corporation and Christophe Beck at Ecolab, a growing number of companies have appointed supply chain executives as CEOs in recent years.

Supply chain leaders are on the hook to deliver top-line business value like never before. The mainstream media constantly scrutinises supply chain performance, as external shocks come thick and fast. Not only that, but quarterly calls with Wall Street analysts frequently focus on supply chain successes and failures. Supply chain performance underpins shareholder sentiment, influences stock prices, and could even determine a company’s future license to operate.

It’s a tough gig, but it’s also giving supply chain leaders an unmatched opportunity to hone their approach, think strategically, and showcase their skills. The nature of the CSCO role lends itself to individuals who possess several key leadership qualities necessary for success at the very top level. 

Winning CSCOs must immerse themselves in every facet of end-to-end operations to balance supply and demand. They’re comfortable with accountability – they have to be, as the buck always stops with them. They’re analytical and data-driven, well-versed in problem-solving (because the next problem is always around the corner), which means they’re able to stay calm and think clearly in a crisis.

Not only that, but as seasoned practitioners who began their careers on the shop or factory floor, they’re empathetic and humble, commanding the respect of their subordinates as well as their boardroom peers. In short, CSCOs have the skills and the temperament required to assume the greatest corporate responsibility of all. 

CSCOs are digital transformation champions

And there’s another critical factor working in their favour: digitisation. 

Right now, the entire corporate world is seeking to embrace AI and enter a new era of digitally driven productivity and profitability. There’s a growing convergence of supply chain and IT within many of the world’s largest organisations. It’s an accepted reality that the supply chain leaders are far better placed than the chief technologists and innovation officers to make digitisation an operational reality.

Fortune 500 CSCOs are already leading the digital charge, figuring out which technologies to embrace and where to deploy them, as well as determining the future talent requirements and upskilling necessary to deliver AI-powered, 100% digitised supply chains. This immense task requires rethinking several decades of normalised business practices and embedded behaviours and convincing their board to back them at every stage in the journey.

In this respect, the plight of the CSCO is synonymous with the race to embrace AI. The Fortune 500 firms that successfully reorient their businesses around AI will be the ones that win, and win big, in the long run. 

Likewise, the CSCOs that succeed in their digitisation mission will have passed the ultimate litmus test – the requirement to lead.

  • People & Culture

Author

Andrew Woods

Published

29 April 2024

Estimated Read time

2Mins

“T-shaped” supply chain professionals combine deep specialisation backed up by broad industry knowledge.

Around the world, supply chains are increasingly under pressure. 

Geopolitical and environmental pressures like conflict in Ukraine or the intensification of the climate crisis aren’t entirely to blame. For many supply chain and procurement teams, the inherent complexity and volume of their roles is increasing. Most allarmingly, workloads are growing without the additional headcount needed to support them. 

“Skills shortages are now seen across all points of the supply-chain continuum, from sourcing to production, logistics, and delivery of goods and services,” author and researcher Joe McKenrick wrote for the Harvard Business Review in September 2023. While McKendrick admits that technology has advanced sufficiently in recent years to “fill in many of the gaps resulting from skills shortages,” he stresses that technology alone cannot solve this problem.    

The future of procurement and supply chain is T-shaped 

One of the issues contributing to the skills shortage in the supply chain sector is an increased trend towards hyperspecialisation. 

Driven by increasingly rapid tech advancement cycles, the as-a-service economy, and a rise in third-party consulting, disciplines have become increasingly refined. 

Organisations today are often comprise expert professionals with high levels of competency in a single specific area. These employees work in silos that lack connectivity with other branches of the larger business. This specialisation not only makes organisations less agile, but slows the process of replacing, retraining, and upskilling workers.  

These specialised workers, with a narrow knowledge base, are known as “I-shaped.” Increasingly, supply chain leaders are feeling the need for workers with a more holistic understanding of the discipline. However, generalists lack the deep, specialised knowledge that can translate into strategic wins and competitive advantage for an organisation. 

The answer is the T-shaped professional. T-shaped professionals or procurement teams are individuals or groups with deep specialisations in a mixture of fields. However, unlike “I-shaped” workers, T-shaped procurement and supply chain professionals also have a broad, generalised knowledge base. This type of employee is more capable of acting outside their area of advanced specialisation. Not only this, however, but their skill makeup make sthem significantly better at collaborating with other professionals. 

This is an age of procurement and supply chain staff shortages. For organisations looking to overcome these pain points, focusing on hiring people with a mixture of deep, specialised knowledge and generalist skills will allow teams to do more with less.

  • People & Culture
  • Sourcing & Procurement

Author

Andrew Woods

Published

5 April 2024

Estimated Read time

4Mins

Macroeconomic turbulence is making it harder to predict customer purchasing, which is in turn hurting supply chains.

Supply chain issues will cost consumer goods brands more than $800 billion in top-line growth over the next five years. At the heart of it, the problem is unpredictability. However, some experts suggest that unpredictability in the supply chain can be a force for increased revenue and strategic opportunity. 

A hostile supply chain landscape 

During the pandemic, global supply chains were exposed for just how fragile they had become. Hyper-globalised just-in-time organisation buckled overnight under the pressures of the COVID-19 pandemic. Since then, the supply chain sector has repositioned itself. Increasingly, supply chain leaders are seen as sources of resilience as they capture value and deliver wins despite disruptions. 

However, the current economic landscape may be—as strange as it seems—more hostile than the climate of 2021. Today, supply chains are being placed under unsustainable pressure. This pressure originates from increasingly unpredictable customer buying behaviour, in addition to ongoing material shortages, and macroeconomic turbulence. 

Supply chain problems aren’t being solved 

“To thrive in this uncertainty, businesses must take control of their supply chains and deliver value. But despite valiant efforts, supply chain problems aren’t being solved,” a report by Celonis found recently. 

The ripples of geopolitical conflict and climate-crisis-driven disruption continue to disrupt global supply chains, with no signs of going away. At the same time, economic pressures are growing more severe. In addition to a global slowdown, multiple post-industrial nations are teetering on the brink of (or already sliding into) recessions. The result is widespread uncertainty as to customer and consumer behaviour. 

Is uncertainty a supply chain killer?

Traditionally, uncertainty is anathema to supply chain managers. In a 2023 Gartner survey of 164 supply chain executives, 63% predicted that supply chain uncertainty would lead to a loss. 

Source: Gartner (November 2023)

Strangely, 9% of CSCOs believes that uncertainty would result in an increase in revenue. This data challenges (in a very small way) the assumption that uncertainty in the supply chain is a bad thing. 

“The inability to cope with uncertainty is driven by a misallocation of initiatives to the wrong strategy,” asserts Tim Payne, Vice President Analyst in Gartner’s Supply Chain Practice. In many supply chains, he argues, processes and systems are set up to “keep keep uncertainty outside the supply chain.” 

However, this is a world where uncertainty is the only state of existence that supply chain managers can count on. Under these circumstances, this methodology comes badly apart at the seams. “This overinvestment in a barrier to keep uncertainty out actually stifles the ability to learn from it, keeping most supply chains today in a fragile state,” Payne says. 

Antifragility in the supply chain

The answer, according to Gartner’s experts, is cultivating an “anti-fragile” supply chain. 

“Rather than trying to keep uncertainty out of the supply chain, antifragile supply chains embrace uncertainty with the objective of learning, evolving and adapting their capabilities based on their improved knowledge of it,” notes Payne. “An antifragile mindset changes how CSCOs approach and shape their capabilities, including in areas such as integrated planning, ROI calculations, supply chain redundancy and assessing uncertainty.” 

According to Gartner’s research, several capabilities are useful in reducing the fragility of supply chains and increasing their potential to capitalise on uncertainty, rather than be disrupted by it. 

 The most impactful antifragile supply chain capabilities identified by Gartner include:

  • Decision Processes and Collaboration. Organisations that enable dynamic decision processes during uncertainty were 4.9 times more likely to have a positive revenue impact.
  • Calculating ROI for Supply Chain Investments. Those that accurately assess the value of investing at different times due to uncertainty saw a 4.5 times increase in positive revenue impact from uncertainty.
  • Managing the Assessment of Uncertainty. Organisations that performed a high degree of experimentation on their supply chains to stress test them saw revenues increase 3.7 times due to uncertainty.
  • Supply Chain Redundancy. Supply chain managers that viewed redundancy (whether from inventory, capacity, or multiple suppliers) as an investment opportunity rather than an inefficiency to be eliminated saw a 3.6 times revenue spike from uncertainty.
  • Supply Chain Planning. Organisations with a focus on end-to-end planning policies in the midterm and accurate functional short-term planning saw revenues increase by 2.5 times.
  • Monitoring, Adjustments and Responsiveness. Businesses that practised monitoring at “arm’s length” to intervene only if policies are breached and empower local stakeholders to adjust within policies saw a 2.1 times increase.
  • People & Culture
  • Risk & Resilience

Author

Andrew Woods

Published

Estimated Read time

5Mins

Supply chain leaders face a challenging world. The nature of supply chain management has changed. As a result, supply chain…

Supply chain leaders face a challenging world. The nature of supply chain management has changed. As a result, supply chain leaders get more recognition for their role in supporting the business than they used to. However, the challenges facing supply chains today have rarely been more daunting. The outset of 2024 has been defined by new challenges and old complications. Skyrocketing shipping costs, logistics disruptions, economic downturn, and other significant issues ranging from the climate crisis to confrontation with labour unions are all conspiring to derail and disrupt supply chains. 

In the midst of this supply chain leaders are feeling the pressure to not only mitigate risk and avoid disruption, but be a source of strategic wins for the business, from environmental reform to simple cost containment. 

Without a skilled supply chain leader, organisations will struggle, and perhaps even fail. Here are the top seven skills setting today’s best supply chain leaders apart from their peers. 

1. Holistic 

The supply chain is no longer an appendage bolted onto the side of a larger organisation. Supply chain leaders need to take a holistic view that accounts for the entire business. The ones who succeed will drive real success for their organisation.

Holistic supply chain leadership also requires a deep understanding of the wider industry. This involves a constantly evolving understanding of events, key players, and the trade-specific knowledge underpinning the sector. Taking into account the entire value chain from sourcing through to the customer is a challenging prospect, however. 

2. Daring 

In an environment where risk management and resilience are prized almost as much as cost containment, risk-taking supply chain leaders might sound a bit out of place—a dying breed. They’re certainly a rare one. A recent Gartner survey found that only “9% of supply chain organisations expect to achieve revenue gains due to uncertainty.” 

However, the report also pointed out that supply chain leaders who were willing to take steps to capitalise on uncertainty could also realise huge strategic wins for their organisations. After all, no one changed the world by playing it safe. 

“An antifragile supply chain starts with the Chief Supply Chain Officer’s mindset,” said Tim Payne, VP Analyst at Gartner. “Rather than trying to keep uncertainty out of the supply chain, antifragile supply chains embrace uncertainty with the objective of learning, evolving and adapting their capabilities based on their improved knowledge of it.”  

3. Communicative 

One of the key aspects of successful supply chain management in challenging times is being able to find ways to collaborate, coexist, and drive efficiency. According to Beatrix Praeceptor, CPO of Mondi Group, “A high-performing supply chain is not so much about processes and tools as about people collaborating and communicating effectively.”

Supply chain leaders need to find ways to drive end-to-end collaboration throughout the value chain. Those that do will end up creating tangible benefits for their stakeholders, partners, and customers alike. 

4. Digitally Driven 

Procurement is becoming a more digitally transformed discipline every year. With 2024 expected to see generative artificial intelligence adoption, increased automation, and a surge in the number of electric vehicles throughout supply chains, leaders will need to be able to evaluate new technologies from a point of authority. 

Digital transformations guided by overexcitement for a shiny new toy you don’t understand are just as dangerous as holding off on embracing technology out of fear or stubbornness. An effective supply chain leader needs to understand the technology they’re using. They also need to understand the market and what’s available to them so they can effectively communicate with vendors about their organisation’s IT needs and advocate for technology solutions that support their goals.  

5. Agile 

It goes without saying that supply chain leaders who are able to prepare, respond, and find ways to turn crisis into opportunity will have a huge advantage in the supply chain sector. The industry itself is in a state of constant disruption. From Houthi attacks in the Red Sea to the worsening effects of the climate crisis, supply chains have rarely looked more precarious. 

As a result, supply chain leaders need to be ready to adapt quickly in order to alter their strategies as demanded by the changing circumstances around them. 

6. Inspiring

The supply chain is the lifeblood of a modern business. It traces the story of a product from its raw materials and creation to the customer, and supply chain leaders are the architects of that story. However, the ability to convey that purpose and inspire those around them might be one of a supply chain leader’s greatest tools. 

Employees who recognise the importance of their work are more likely to work harder, longer, and create better output.   

7. Ethical 

Supply chains will play a significant part in whether or not we can overcome the challenges posed by our world. Every supply chain that starts with deforestation, slavery, strip mining, and other objectively unethical practices is complicit. Every supply chain that passes through a sweatshop, uses forced prison labour, or endorses a fascist regime by doing business within their borders is complicit. 

A heavy ethical burden has been laid at the feet of supply chain leaders. While there may be increased pressure from consumers and stakeholders to improve ESG throughout many organisations, without champions in the supply chain, change will be slow, incremental, and keep many organisations mired on the wrong side of history.

  • People & Culture

Author

Andrew Woods

Published

Estimated Read time

3Mins

To overcome macroeconomic and environmental challenges, supply chain leaders must foster greater collaboration within their supplier ecosystems.

As 2024 continues to unfold, the lessons of the past three years are more clearly visible than ever before. Economic pressures, geopolitical conflict, and climate disruption are no longer freak events. They are the new normal and they are here, in one form or another, to stay. 

Supply chains face an increasingly complex and challenging landscape where the strategies that translated to success pre-pandemic are no longer viable. “Greater efficiency [comes] at the expense of diminished flexibility and effectiveness — a tradeoff the pandemic-induced supply chain disruptions have made painfully clear,” analysts from the Boston Consulting Group argue. 

Resilience, cost, and environmental impact all need to be held in a much more even balance in 2024 than they did five years ago. As a result, supply chain leaders need to reevaluate their approach to building and maintaining relationships throughout their supplier networks. 

A collaborative approach to supplier ecosystems 

In the face of a hostile supply chain landscape, supply chain leaders can potentially mitigate risk and exposure to disruption by taking a less transactional approach to supplier relationships. As noted by Fraser Robinson, co-founder and CEO of Beacon, in a recent interview, “there’s no way to eliminate risk and volatility from your supply chain entirely, but improving information sharing and collaboration across stakeholders can go a long way to help control the fallout.”

This more collaborative approach rests on the twin foundational pillars of trust and technology. 

Collaborative digital tools that allow suppliers and buyers up and down the value chain increased visibility can proactively address and mitigate potential delays while replicating wins. This level of visibility can ensure that all parties along the value chain can see exactly where goods and materials are at the same time—in real time. In a market defined by disruptions, this holistic visibility increases organisations’ ability to identify and respond to said disruption dramatically. 

This level of information sharing obviously requires an amount of trust. This is especially true in a climate where cyber attacks are ever on the rise, with ecosystem partners being an increasingly common source of successful breaches. 

Despite this, however, there are significant benefits of creating trust up and down the supply chain. According to Robinson, these positives are measurable all the way from raw material production to the consumer. Robinson notes that “Certainly, in our world, it takes time to build that trust from the ground up, so that’s why we just have fact-based solutions. Trust is built much faster if the system accurately reflects reality, and users learn that very quickly.”

  • Collaboration & Optimization
  • People & Culture

Author

Dan Brightmore

Published

6 March 2024

Estimated Read time

3Mins

Read in brochure format

Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital…

Our cover story this month focuses on the work of Arianne Gallagher-Welcher. As the Executive Director for the USDA Digital Service, in the Office of the OCIO, her team’s mission is to drive a tech transformation at the USDA. The goal is to better serve the American people across all of its 50 states.

Welcome to the latest issue of Interface magazine!

Welcome to a new year of possibility where technology meets business at the interface of change…

Read the latest issue here!

USDA: The People’s Agency

“We knew that in order for us to deliver what we needed for our stakeholders, we needed to be flexible – and that has trickled down from our senior leaders.” Arianne Gallagher-Welcher, Executive Director for the USDA Digital Service reveals the strategic plan’s first goal. Above all, the aim is to deliver customer-centric IT so farmers, producers, and families can find dealing with USDA as easy as using an ATM.

BCX: Delivering insights & intelligence across the Data & AI value chain

We also sat down with Stefan Steffen, Executive Leader for Data Insights & Intelligence at BCX. He revealed how BCX is leveraging AI to strategically transform businesses and drive their growth. “Our commitment to leveraging data and AI to drive innovation harnesses the power of technology to unlock new opportunities, drive efficiency, and enhance competitiveness for our clients.”

Momentum Multiply: A culture-driven digital transformation for wellness

Multiply Inspire & Engage is a new offering from leading South African insurance provider Momentum Health Solutions. Furthermore, it is the first digital wellness rewards program in South Africa to balance mental health and physical health in pursuing holistic wellness. CIO, Ndibulele Mqoboli, discusses re-platforming, cloud migrations, and building a culture of ownership, responsibility, and continuous improvement.

Clark County: Creating collaboration for the benefit of residents

Navigating the world of local government can be a minefield of red tape, both for citizens and those working within it. Al Pitts, Deputy CIO of Clark County, talks to us about the organisation’s IT transformation. He explains why collaboration is key to support residents. “We have found our new Clark County – ‘Together for Better’ – is a great way to collaborate on new solutions.”

Also in this issue, we hear from Alibaba’s European GM Jijay Shen on why digitalisation can be a driving force for SMEs. We learn how businesses can get cybersecurity right with KnowBe4 and analyse the rise of ‘The Mobility Society’.

Enjoy the issue!

Dan Brightmore, Editor

  • People & Culture