Analyst Insight: The unpredictability in North American supply chains is threatening to increase the complexity of these networks and weaken their resiliency. It’s more important than ever that supply chain decision-makers think about digitization as an ecosystem in which all systems work together. This orchestration mindset will enable organizations to more effectively utilize established and emerging technologies to drive out inefficiencies, improve predictability and enable agility within the network. 

While supply chain leaders may be hoping for stability in the coming years, research presented in the DHL Supply Chain Insight 2030 report indicates the pace of change and disruption may be accelerating. Advanced systems and increased automation are essential in managing the modern supply chain. However, these technologies also bring their own set of challenges.

According to DHL's survey, supply chain leaders expect a range of disruptive forces through 2030. A substantial majority anticipate cybersecurity threats (70%), higher labor costs (69%), labor shortages (66%), natural disasters (63%) and international tensions (62%) will all impact their networks. These concerns reflect a complex threat landscape that can stretch expertise and resources across multiple and diverse fronts. From cyberattacks that shut down operations, to labor shortages that reduce service levels, to international tensions that disrupt supply, the last several years have made participants wary about what the future holds. 

Supply chain managers adapt as best they can, but the consequence is often inefficient resource utilization, especially when it comes to technology. As digitization continues to advance, it’s optimizing material flow and the resources that support it across the entire supply chain. That’s where orchestration comes in. 

As global networks grow more complex and reliant on advanced technologies, orchestration — the centralized coordination, management and optimization of all supply chain activities and resources — is vital to supply chain performance. The goal of orchestration is to eliminate inefficiencies by dynamically balancing supply chain resources, so that the value of every resource is maximized, and orders can be filled faster, more efficiently and at lower cost. A fully orchestrated supply chain would rely on digitalization technologies to create near-100% accurate inbound forecasts, and then develop and execute a plan to ensure all supply chain resources, including people, systems and automation, are balanced and used optimally to execute on that plan. 

As orchestration evolves and matures, it is bringing elevated sophistication to supply chain management that maximizes the speed of supply chain operations. By applying orchestration strategies and synchronizing operations, companies are better positioned to increase resource utilization, reduce costs and enable faster and more efficient responses to events that can disrupt operations on a given day.

Effective orchestration requires both deep supply chain experience and technology expertise, along with proven processes for managing technology and people. Partnerships with third-party logistics providers that provide end-to-end supply solutions and have a track record for innovation, operational excellence and continuous improvement will be essential to realizing the benefits of orchestration.

Resource Link: https://www.dhl.com

Outlook: Orchestration represents the next frontier in supply chain digitalization. As it continues to evolve and mature, and is increasingly supported by analytics and artificial intelligence, it will bring a new level of sophistication to supply chain management that minimizes the costs and maximizes the speed of supply chain operations. By increasing orchestration, supply chain organizations will be able to drive out inefficiencies, improve predictability and enable agility.